Ripple’s price has seen a surge in recent weeks, breaking above the significant resistance level of $0.43. However, this may not mean the end of the bear market as warning signals are emerging.
Technical Analysis
By: Edris
XRP/USDT Daily Chart:
The price has sharply risen following a breakout above the $0.43 level and the 50-day and 200-day moving averages which are around the $0.4 mark. These moving averages are also on the cusp of a bullish crossover with the 50-day moving average almost crossing the 200-day one to the upside. However, from a classical price action standpoint, things do not look great.
The price has been decisively rejected from the key $0.55 resistance level, and a clear bearish divergence can be seen in the RSI between the last two price highs, indicating the possibility of imminent correction. The first potential support area would be the $0.43 level in that case.
XRP/BTC Daily Chart:
Against BTC, the future looks even gloomier as the price appears to be dropping back inside the broken descending channel after being impulsively rejected from the 200-day moving average at around 0.00002 SAT. If the 0.000018 SAT level fails to hold, the recent breakout will be seen as fake, and it could lead to a more profound decline toward the 0.000016 SAT level in the short term. On the other hand, if the market rebounds from the current area, the 200-day moving average would be the first target, followed by the static resistance level of 0.000022 SAT. However, judging from the current price action, a pullback seems more likely in the short term.
