Key Takeaways:
- XRP is showing bullish signs above the $0.580 support zone.
- A major bullish trend line is forming with support near $0.5780 on the 4-hour chart.
- The price seems set up for a 15%-20% surge above the $0.6220 resistance.
NEW DELHI (CoinChapter.com) — XRP is consolidating gains above $0.60 and setting up for a fresh rally. The current positive price action in SOL and ADA could raise it to $0.70. In the past few days, the XRP price steadily increased from the $0.535 support zone.
XRP Price Eyes Fresh Surge
The XRP price climbed above the $0.550 and $0.565 resistance levels to move further into a positive zone. It seems like the current momentum in SOL, ETH, ADA, and a few other cryptocurrencies could lead XRP higher in the coming sessions.
The last bullish wave took the price above the $0.60 resistance and the 50 simple moving average (blue, 4 hours). It traded to a new multi-week high at $0.6218 and recently started a consolidation phase. It seems like there is a short-term contracting triangle forming with resistance at $0.610 on the 4-hour chart.
There was a downside correction below the 50% Fib retracement level of the upward move from the $0.5340 swing low to the $0.6218 high. However, XRP bulls protect sharp losses and could set up a fresh rally.
A clear move above the triangle resistance could drift the price toward the $0.6220 resistance. If the price settles above the $0.6220 resistance, it might set up for a 15%-20% rally.
In the stated case, XRP could surge toward the $0.70 resistance. The next key resistance is near $0.718, above which there are chances of a move toward the $0.735 pivot level.
Recently, Ripple avoided market volatility and instability by relocking 800 million XRP (two transactions containing 400M) within a day of releasing 1 billion coins from its escrow accounts.
Dips Could Be Attractive
Suppose XRP fails to start a fresh increase above the $0.6220 resistance. In the stated case, the price might correct lower below the triangle support at $0.60. The first major support below the triangle trend line is at $0.592.
The next major support is near a bullish trend line at $0.5780. The trend line is close to the 50% Fib retracement level of the upward move from the $0.5340 swing low to the $0.6218 high, below which there is a risk of a drop toward the next key support at $0.5650.
Any more losses could increase selling pressure and push the price toward $0.5350.
Overall, XRP price holds gains above $0.60 and seems to be setting up for a fresh rally above $0.6220. If the bulls succeed, the price could surge toward $0.70 or even $0.7350. Conversely, there could be a downside extension toward $0.5780.
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