XRP holders are evidently battered. Price action isn’t in sync with trickling fundamentals if the Ripple weekly technical chart is anything to by. From the chart, the third most valuable digital asset is under pressure and in a firm bear trend if the 20-week moving average is a guide for chartists and other unconvinced pragmatists.
The 20-Week Moving Average is the Immediate Resistance
At spot rates, Ripple (XRP) is under pressure and although traders are optimistic considering the stream of good news over the last couple of weeks, prices are still depressed and could further cave in if bulls don’t break above a key resistance line. The 20-week moving average (MA) is the immediate liquidation resistance line and has remained so over the last 18 months.
From the chart, XRP bulls have failed to close above this flexible line following the bear breakout in Q2 2019. In the first week of July 2019, prices spectacularly collapsed below the then support now resistance line. The aftermath saw XRP sink below a key 18-month support and price is yet to recover.
XRP up 7.5% in the Past 7 Trading Days
Nonetheless, there are bullish flickers. Week-to-date, XRP is one of the best performers in the top 10. Although lagging Bitcoin Cash and Bitcoin SV, it is up 7.5% against the USD and at break-even with BTC.
Overly, this is a net positive as candlestick arrangement points to more upsides. If prices soar from spot levels and break past the 20-week MA, odds are XRP will rally to November 2019 highs of 30 cents.
XRP/USD Price Analysis
From the daily chart, XRP prices are firm above the 20-day MA, trading above the level for the first time in two months. Moreover, Jan 6 bull bar is conspicuous and trend-setting. Notably, accompanying the bull bar were high trading volumes. Price action didn’t build on Jan 6 gains.
However, bears didn’t reverse gains made and that from an effort versus results point of view is bullish. Risk off traders may accumulate in lower time frames as long as prices are trending above the 20-day MA, or the immediate support. There will be more opportunities if prices surge past Jan 6 highs at the back of high trading volumes in a bull trend continuation.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich