- The weekend session was also characterized by mundane trading with action.
- Ripple upside remains capped at $0.34 supply area: Consolidation is key at the moment.
There are not major movements on the crypto market on the first day of this week’s trading. The weekend session was also characterized by mundane trading with action. Ripple price did manage to stay above the key $0.30 following the recovery from lows marginally above $0.28.
XRP/USD 1-h chart
In fact, Ripple has staged a recovery within an upward trending channel. The gains on Sunday hit highs around $0.3450 before corrections set in. While there was a break under the short-term 50 Simple Moving Average (SMA) 1-h, the price managed to find a bearing above the longer-term 100 SMA 1-h.
Moreover, the 61.8% Fib retracement level taken between the last swing high at $0.3450 to swing low of $0.2814 assisted in stopping the move south. As of writing this analysis, Ripple is trading at $0.33 and battling the 50 SMA resistance.
Key Levels to Watch
The ascending channel is very important to the upward trending Ripple. As mentioned, no sudden movements are present at the moment, but further correction will depend on several technical levels. A break past the 50 SMA ($0.33) will pave the way for growth towards the supply areas at $0.34. The buyers must fight to break above the channel resistance in the near-term. A move that will most likely give XRP the kick above $0.35.
Looking at the Moving Average Convergence Divergence (MACD) consolidation is the most likely move before the next breakout. The signal from the indicator is neither bullish nor bearish (no divergence visible).
Ripple Key Technical Levels
Key Support Areas: 100 SMA, the 50% Fib level, $0.30 and $0.28.
Critical hurdles: 50 SMA around $0.33, $0.34 (supply area) and $0.40.
MACD 1-h chart: Holding tight to the mean line (no divergence) suggesting sideways trading in the near-term.
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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