- Ripple rebounds after support at $0.37; all eyes target $0.65 in the near-term.
- The improving technical picture suggests that bulls are back in control.
- If the immediate resistance at $0.5 is not broken, XRP may embark on the breakdown to $0.35.
Ripple dropped like a dead weight in the air amid the declines on Monday and Tuesday. The widespread losses left no stone unturned, with the majority of cryptocurrencies posting double-digital losses. XPP could not secure support and the 200 Simple Moving Average (SMA) on the 4-hour chart, culminating in losses under $0.4.
Before the ongoing rebound, the cross-border cryptocurrency established support at $0.37. The high congestion of buyers at this level paved the way for gains above $0.4 and the 200 SMA. Currently, XRP is dancing at $0.49 after stepping above the 50% Fibonacci retracement level taken between the last swing high of $0.66 to a low of $0.36.
A comprehensive glance upwards shows that Ripple bulls are looking forward to breaking the confluence resistance around $0.525, formed by the 61.8% Fibo, the 100 SMA, and the 50 SMA on the 4-hour chart.
The bullish narrative has been reinforced by the Relative Strength Index (RSI) as it heads towards the midline. A break above 50 would encourage more buyers to join or increase their positions in the international money transfer token. Note that trading above $0.525 could trigger massive buy orders, creating enough volume to support an upswing to $0.65.
XRP/USD 4-hour chart
It is worth keeping in mind that XRP’s expected rally to $0.65 may fail to occur if the short-term resistance at $0.5 remains intact. A correction from current levels will retest the support at 200 SMA. If push comes to shove, the bearish leg will extend to $0.37 (recent support) and $0.35, respectively.
Ripple intraday levels
Spot rate: $0.49
Relative change: 0.02
Percentage change: 4.5%