Ripple price gained momentum this month and settled above $0.4750 against the US Dollar. XRP/USD remains in an uptrend and it could accelerate above $0.5400 and $0.5600.
- Ripple price traded as high as $0.5660 recently and later corrected lower.
- XRP/USD is currently placed well above a significant bullish trend line with support at $0.4850 on the 4-hours chart.
- XRP price could continue to move higher towards $0.5600 as long as it is above $0.4750.
Ripple Price Analysis
This month, there was a nice upward move in ripple price from the $0.4400 swing low. XRP/USD traded above a couple of important resistances near $0.4600 and $0.4750 to move further into a bullish zone.
The daily chart of XRP/USD indicates that the price broke the $0.5000 resistance and settled above the 50 simple moving average (4-hours). It traded as high as $0.5660 and later started a downside correction below $0.5400.
The price declined below the $0.5100 level and the 50% Fib retracement level of the last wave from the $0.4478 low to $0.5660 high. However, losses were protected by the $0.4900 level and the 50 simple moving average (4-hours).
More importantly, the price found support near the 61.8% Fib retracement level of the last wave from the $0.4478 low to $0.5660 high. Further below, there is a significant bullish trend line with support at $0.4850 on the same chart.
Clearly, the price is forming a solid support near the $0.4850 and $0.4900 levels. It could soon start a fresh upward move above the $0.5200 resistance, above which there are chances of a solid rise towards the $0.5500 and $0.5600 levels.
Therefore, buying in the short term near the $0.4850 level may be considered as long as there is no daily close below the $0.4750 support level.
The technical structure is positive and suggests bullish continuation in ripple price above the $0.5400 resistance levels. However, buyers need to keep a close watch on the $0.4850 and $0.4750 support levels. A successful close below $0.4750 will most likely invalidate the bullish scenario and it could push the price back towards $0.4000
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com