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Ripple-Promoted Token Price Analysis XRP / USD: Overcoming Limits

XRP is preparing to face its resistance level, once again.

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  • Ripple has turned bullish over the short-term, but remains medium-term bearish while trading below the $0.3400 level
  • The four-hour time shows that a bullish inverted head and shoulders pattern may be forming
  • The XRP / USD pair faces a major technical battle with the $0.3000 level

Ripple is on the rise, after the third-largest digital asset found strong dip-buying demand from the $0.2650 level last week. The cryptocurrency has been gradually gaining bullish momentum, since recovering from the $0.2140 level last month.

The sharp rebound from the $0.2130 level, coupled with an emerging bullish pattern on the four-hour time frame suggests that a medium to long-term price floor in the cryptocurrency may have been formed last month.

The XRP / USD pair has gained over fifteen percent in value since the start of the month and has reclaimed over thirty-five percent from its September monthly trading low. Going forward, the cryptocurrency faces a major technical battle with the $0.3000 level.

SIMETRI Research

The $0.3000 level currently denotes major trendline resistance from a long-standing triangle pattern on the daily time frame. The $0.3000 level has also acted as a key psychological level that traders regularly observe. The loss of the $0.3000 level in August provoked a bearish sentiment shift in the cryptocurrency, which eventually culminated in the late September plunge towards the $0.2000 level.

The four-hour time frame is showing that if buyers can rally the XRP / USD pair towards the $0.3400 level, then a bullish inverted head and shoulders pattern with a substantial upside projection will form. The overall upside projection of the pattern would take the XRP / USD pair towards the $43.00 level.

Furthermore, the XRP / USD pair’s 200-day moving average is located around the $0.3400 level. The odds are high that bulls will test towards the $0.3400 level if they can stabilize price above the $0.3000 level over the coming sessions.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Ripple is neutral, at 57.980 %, while the overall long-term sentiment towards the cryptocurrency is fairly bearish, at 38.00%.

 

XRP H4 Chart October 14 by TradingView
XRP / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame highlights that the September 18th swing-high, around the $0.3270 level, currently offers the strongest form of resistance above the $0.3000 level.

The daily time frame highlights the $0.3400 level as major technical resistance if bulls gain strength above the $0.3270 level. Traders should watch for a major technical breakout if bulls gain strength above the $0.3270 level.

 

XRP Daily Chart October 14 by TradingView
XRP / USD Daily Chart by TradingView


 Downside Potential

The four-hour time frame is showing that major short-term support for the XRP / USD pair is currently located at the $0.2730 and $0.2640 levels.

The daily time frame is showing that a loss of the XRP / USD pair’s 50-day moving average would be extremely bearish for the cryptocurrency. The 50-day moving average is currently located around the $0.2620 level.


Summary

Ripple is approaching major technical resistance around the $0.3000 level, after gaining around fifteen percent in value so far this month.

Both the lower and medium-term time frames highlight that a move above the $0.3400 level could provoke a major bullish breakout in the XRP / USD pair.

 

Find out more about Ripple and XRP in our coin guide.

A deeper look into the merits of the project can be found in our SIMETRI Report.

 

XRP Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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