Key Takeaways:
- Ripple price rallied above the $0.50 resistance zone.
- XRP cleared a major bearish trend line with resistance at $0.385 on the daily chart.
- The price could continue to rise if it clears the main $0.55 resistance zone.
Ripple’s XRP is up over 25% and trading above $0.50. However, the price is testing a major barrier at $0.55 and might struggle to continue higher.
Ripple (XRP) Price Reaches Key Juncture
In the past few days, Ripple price saw a decent increase from the $0.35 support against the US Dollar. The price formed a base and cleared the $0.38 resistance to move into a positive zone.
The price cleared a major bearish trend line with resistance at $0.385 on the daily chart during the increase. It opened the doors for a strong rally above the $0.40 and $0.42 resistance levels. The price even broke the $0.50 resistance zone, outperforming Bitcoin and Ethereum.
Finally, there was a spike above the key $0.55 resistance (a multi-touch zone). A high is formed near $0.5850, and the price consolidates gains.
It is trading near the 23.6% Fib retracement level of the upward move from the $0.3488 swing low to the $0.5850 high. XRP price is now trading well above $0.50 and the 50-day simple moving average (blue).
On the upside, the price faces a major hurdle near $0.55. A daily close above $0.550 might start a new rally. The next major resistance is near the $0.585 zone, above which the price might rise toward the $0.62 level. Finally, any more gains might push the price toward the $0.65 resistance.
Downside Correction?
The Ripple price might correct lower if no upside break is above the $0.550 resistance. On the downside, initial support is near the $0.52 level. The first major support is now forming near the $0.500 level.
A downside break below the $0.500 support might send the price toward the $0.465 support.
It is near the 50% Fib retracement level of the upward move from the $0.3488 swing low to the $0.5850 high. A close below the $0.465 level could send the price toward the $0.440 zone. Any more losses below $0.440 might stage a strong decline.
The price might even test the $0.4 support in the stated case.
Overall, the XRP price shows many bullish signs above the $0.50 level. If the bulls remain active, the price might surge toward the $0.62 and $0.65 levels. Conversely, the price might start a fresh decline and revisit $0.465.
