Ripple (XRP) Price Bullish Breakout, Why Close Above $0.42 is Crucial

Ripple’s XRP gained over 15% and traded above $0.40. The price is now correcting gains and dips might be limited below the $0.380 support zone.

Ripple (XRP) Price Starts Fresh Increase

This past week, XRP formed a base above the $0.3200 zone against the US Dollar. The price remained well bid above the $0.320 level and started a steady increase.

The price was able to clear a couple of key hurdles near the $0.340 and $0.350 levels to move into a positive zone. It even gained pace for a move above the $0.380 resistance and the 50 simple moving average (blue, 4-hours), outperforming bitcoin and ethereum.

Ripple’s 4-hours price chart | Source: XRP/USD on TradingView.com

The price is up over 15% in a couple of days and there was a clear move above the $0.400 resistance. However, the bulls failed to clear a multi-touch weekly resistance at $0.420 and $0.425.

A high was formed near $0.4242 and the price is now correcting gains. There was a move below the $0.400 level. XRP dipped below the 23.6% Fib retracement level of the recent increase from the $0.3400 swing low to $0.4242 high.

An initial support is near the $0.3820 level. There is also a major bullish trend line forming with support at $0.380 on the 4-hours chart. The trend line is close to the 50% Fib retracement level of the recent increase from the $0.3400 swing low to $0.4242 high.

The next major support is near $0.3600 and the 50 simple moving average (blue, 4-hours). A close below $0.360 may perhaps start a strong decline. In the stated case, the price might even test the $0.320 support.

On the upside, an immediate resistance is near the $0.410 level. The next major resistance is near the $0.425 zone. A clear wave above the $0.425 level could start a major rally in the near term. In the stated case, the price may perhaps rise towards the $0.50 zone.

Overall, XRP price is gaining pace above the $0.360 and $0.380 levels. If the bulls clear the $0.425 barrier, the price could drift towards the $0.50 level. Conversely, there might be a fresh dip towards the $0.320 level.