Ripple (XRP) Is Surging: Here’s How It Can Fuel Bitcoin’s Rally
Ripple is up more than 10% and it broke the key $0.2000 resistance area against the US Dollar. XRP price is showing positive signs, suggesting a similar breakout in bitcoin above $8,000.
- Ripple price succeeded in clearing a major resistance near $0.2000 against the US dollar.
- There was a sharp upward move above the $0.2120 and $0.2150 levels.
- To start the recent rally, a major contracting triangle with resistance near $0.2020 was breached on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair traded to a new monthly high at $0.2185 and it is currently consolidating gains.
Ripple Price Rallies 10%
In the past few days, ripple made a couple of attempts to clear the $0.2000 resistance. XRP price formed a strong support base above $0.1920 and finally managed to surge above the $0.2000 hurdle (as discussed in yesterday’s analysis).
To start the recent rally, a major contracting triangle with resistance near $0.2020 was breached on the hourly chart of the XRP/USD pair. The pair broke many hurdles on the way up, including $0.2120 and settled nicely above the 100 hourly simple moving average.
A similar pattern is forming for bitcoin and BTC could surge it is breaks the $8,000 resistance. Ripple traded to a new monthly high at $0.2185 and it is currently consolidating gains.
It is testing the $0.2150 level and the 23.6% Fib retracement level of the recent rally from the $0.2054 swing low to $0.2185 high. The first major support is near the $0.2120 and $0.2110 level.
The 50% Fib retracement level of the recent rally from the $0.2054 swing low to $0.2185 high is also near $0.2119. The main uptrend support is now forming near the $0.2100 level (the recent breakout zone). Any further losses might lead the price back towards the $0.2000 pivot level in the coming sessions.
Ripple is clearly correcting lower from the $0.2185 high. However, the price remains well supported on the downside near $0.2120.
On the upside, the 0.2175 and $0.2180 levels are initial hurdles. The main resistance is near the $0.2200 level, above which the bulls are likely to aim another 5%-8% rise.
Hourly MACD – The MACD for XRP/USD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting lower from the 80 level.
Major Support Levels – $0.2120, $0.2110 and $0.2100.
Major Resistance Levels – $0.2175, $0.2180 and $0.2200.
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Published at Wed, 29 Apr 2020 05:58:08 +0000