- Ripple breaks out of the descending channel extending gains above $0.27 hurdle.
- As long as the technicals remain stable as they are not, XRP has the potential to stay above $0.27.
The Fridays and particularly the weekends have some special relation with the cryptocurrency market. No wonder, we can observe slight gains across the board. Ripple, for instance, is up 2.17% in the last 24-hours according to the crypto listing website, CoinMarketCap. The other top three coins, Bitcoin and Ethereum are in the green as well.
Ripple managed to break out of a short-term descending channel yesterday. The move allowed the price to extend the gains above the immediate resistance at $0.27 and push towards $0.28. However, the 100 Moving Average (MA) 1-hour stood in the way of further upward correction.
XRP/USD 1-Hour Chart
Ripple upside has remained capped under the 100 MA while the downside is protected by the short-term rising trendline. Besides, the former resistance at $0.27 has transformed into a viable support with a high concentration of buyers.
Looking at the hourly chart, XRP is finally in a sportive zone. The Moving Average Convergence Divergence (MACD) is back in the positive territory after diving to -0.00354 this week. The MACD is holding the position at 0.00138 and the lack of a divergence either side means that Ripple’s market is in indecision.
Moreover, the Relative Strength Index (RSI) has sustained a gradual slope upwards. The reversal started after hitting levels in the oversold around 20. Although, the indicator tried and failed to breach the overbought level at 70 yesterday, it has managed to stay above the average (50) in spite of the correction. As long as the technicals remain stable as they are not, XRP has the potential to stay above $0.27 and allow the bulls to focus on breaking $0.28 barrier in readiness for a much-awaited assault on $0.3.
Ripple Key Technical Levels
Spot rate: $0.2712
Relative Change: 0.000432
Trend: Strongly bullish.