Ripple Price Set to Break Critical Resistance Barrier for a 40% Explosion in XRP Price to $0.42

By John Isige
Published January 18, 2021 Updated January 19, 2021
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Ripple Price Set to Break Critical Resistance Barrier for a 40% Explosion in XRP Price to $0.42

By John Isige
Published January 18, 2021 Updated January 19, 2021
  • Ripple price eyes significant breakout above $0.3 if the swings past the descending triangle’s hypotenuse.
  • The number of whales within the XRP ecosystem has rallied extensively since the beginning of the year, suggesting that buying pressure is rising.

Ripple price is on the verge of a massive breakout amid the extended consolidation. The daily close under $0.3 and the 50 Simple Moving Average on the 4-hour forced XRP price to explore levels under $0.27. However, a recovery seems imminent with the price reclaiming the position above the 100 SMA.

Ripple draws nigh to a critical technical barrier, XRP Price May Boom

At the time of writing, XRP/USD is dancing at $0.28. Its immediate upside is limited by the 50 SMA. However, the 4-hour chart brings to light the formation of a descending triangle pattern. Although this pattern is generally viewed as bearish, a breakout above the hypotenuse would result in a 40% upswing in XRP Price to $0.42.

Trading above the 50 SMA will validate the uptrend. Moreover, if Ripple makes a daily close above the critical barrier at $0.3, buying orders are likely to surge, creating enough tailwind to push XRP upwards.

XRP Price Analysis: XRP/USD 4-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview 

According to Santiment, large volume holders of XRP have been growing since the beginning of the year. For example, whales holding between 10,000 and 100,000 XRP are holding at nearly 103,500 from roughly 98,000 on January 1. A similar growth pattern has also been seen with the addresses having between 100,000 and 1 million XRP, which rose from approximately 16,300 to 17,250 in the same period.

Ripple holder distribution, What’s Next for XRP Price?

Ripple Price Action
Ripple Price Action

The increase in the number of whales suggests that buying pressure is building behind XRP. Therefore, this is a bullish sign for the token, likely to validate the expected upswing.

It is worth mentioning that the bullish outlook will be invalidated if XRP fails to close the day above the 50 SMA and the barrier at $0.3. On the other hand, losing the support at 100 SMA will see losses toward $0.25 return into the picture.

Ripple intraday levels

Spot rate: $0.285

Relative change: 0.0077

Percentage change: 3%

Trend: Bullish

Volatility: Growing

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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