Key Takeaways:
- XRP price stayed above the $0.400 support and recovered some losses.
- It is still trading in a major contracting triangle with resistance at $0.6150 on the weekly chart.
- The price could rally if it closes above the 50-week simple moving average and $0.6150.
NEW DELHI (CoinChapter.com) — XRP is recovering losses and trading above $0.500. The bulls could gain strength if the price clears the $0.580 and $0.6150 resistance levels.
XRP Price Escapes Breakdown
In the last analysis, we discussed a major contracting triangle with support near $0.4250 on the weekly chart of XRP/USD. The price spiked toward the triangle support zone where it found a strong buying interest.
A low was formed at $0.4154 and the price started a recovery wave like Bitcoin and Ethereum. There was a decent increase above the $0.450 and $0.480 resistance levels. The bulls pushed the price toward the 50-week simple moving average (blue) and the 50% Fib retracement level of the downward move from the $0.7424 swing high to the $0.4154 low.
The price is still trading in a major contracting triangle with resistance at $0.6150 on the weekly chart. It seems like the bulls are now facing resistance near the 50-week simple moving average (blue) at $0.580.
The main breakout resistance is now forming near the triangle region at $0.6150. It coincides with the 61.8% Fib retracement level of the downward move from the $0.7424 swing high to the $0.4154 low.
A weekly close above the 50-week simple moving average (blue) and then the triangle resistance could set the stage for a strong bullish move. In the stated case, the next stop for XRP bulls could be $0.740. The next resistance is near the $0.840 zone, above which the price could start a larger uptrend toward $1.00.
Another Rejection?
Conversely, XRP price might fail to clear $0.580 or $0.6150 and start another decline. Immediate support is near the $0.5050 level. The next key support sits at $0.480.
The main uptrend support is now forming near the $0.4150 zone. If the bulls fail to protect the triangle support, there might be a strong decline. The next major support is $0.350. A downside break below the $0.350 support might increase selling pressure. In the stated case, the price may decline toward the $0.300 level.
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Overall, XRP price stayed above crucial support and recovered above $0.50. To continue higher, it must surpass the $0.580 and $0.6150 resistance levels. Conversely, the price might drop again and revisit the triangle support at $0.4150.
