After an impulsive bullish rally, Ripple has surpassed several resistance levels, including the 50-day moving average, multi-month triangle pattern, and major swing highs. But now, the price is facing a significant resistance zone at $0.55.
The Daily Chart
The price underwent an impulsive spike and surpassed critical resistance levels, creating a bullish sentiment for the cryptocurrency. However, the rally paused temporarily after reaching a significant barrier around $0.55, and the price declined slightly. If the price drops suddenly, $0.42 will act as critical support, which is also the 50-day moving average level.
The 4-Hour Chart
A healthy bullish rally consists of an impulsive phase involving a considerable surge, followed by a corrective phase where the price forms correction patterns. Ripple also experienced a similar pattern. It underwent an impulsive rally and broke through the descending price channel. It then entered a short-term correction phase, forming a symmetrical triangle pattern. Later the cryptocurrency resumed its upward trend by breaking above the triangle’s upper boundary with a strong move. However, when the price reached the critical resistance zone of $0.55, the rally paused, and Ripple entered another correction phase, forming a descending flag pattern.
If the price breaks above the flag pattern and claims the $0.55 resistance level, it may trigger an extensive rally. But the minor $0.48 zone will serve as Ripple’s primary support if rejection occurs.