Charted: Ripple (XRP) Turns Green, Here’s Why The Bulls Could Aim $2

May 7, 2021 0 Comments

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Ripple started a fresh rally above the $1.50 barrier against the US Dollar. XRP price is likely to surge further if it clears the $1.75 and $1.80 resistance levels.

  • Ripple is gaining bullish momentum above the $1.55 and $1.60 resistance levels against the US dollar.
  • The price is now trading well above $1.50 and the 100 simple moving average (4-hours).
  • There was a break above a key bearish trend line with resistance near $1.58 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to continue higher if it clears the $1.75 resistance zone.

Ripple’s XRP Price Extends Rally

In the past few sessions, ripple’s XRP traded with a positive bias above the $1.40 support. XRP formed a support base above $1.40 and started a fresh increase, similar to bitcoin and ethereum.

The price broke many important barriers near the $1.50 level. There was a break above a key bearish trend line with resistance near $1.58 on the 4-hours chart of the XRP/USD pair. The pair cleared the 61.8% Fib retracement level of the main downward move from the $1.97 high to $0.95 swing low.

It is now trading well above $1.50 and the 100 simple moving average (4-hours). XRP is now facing hurdles near the $1.73 and $1.75 levels.

Ripple’s XRP Price

Source: XRPUSD on TradingView.com

It seems like the price is struggling to clear the 76.4% Fib retracement level of the main downward move from the $1.97 high to $0.95 swing low. A successful break above the $1.73 and $1.75 resistance levels could spark another rally.

The next key resistance is near the $1.80 level, above which the bulls are likely to aim a test of the $2.0 level in the coming sessions.

Dips Limited in XRP?

If ripple fails to clear the $1.75 resistance or $1.80, it could correct lower. An initial support on the downside is near the $1.52 level.

The next major support is near the $1.50 and $1.48 levels. If there is a downside break and close below the $1.48 level, the price could start a major downside correction. In the stated case, the price is likely to drop towards the $1.25 support.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 60 level.

Major Support Levels – $1.52, $1.50 and $1.48.

Major Resistance Levels – $1.65, $1.75 and $1.80.

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