Technical Analysis of the Cryptocurrency Market: A Closer Look at Ripple
In the cryptocurrency market, technical analysis emerges as a crucial indicator, especially for investors trading in the futures market. So, what clues does technical analysis provide for Ripple, which was trading at the level of $0.6267 at the time of writing? We examine this with a detailed chart analysis and key support and resistance levels.
Ripple Chart Analysis
The most important formation to follow in Ripple’s daily chart is the ascending channel formation. The breakout of the formation resistance in the first week of November led many investors into a bull trap, causing significant losses especially in the futures market. The latest bar formations touching the support line could soon cause XRP to gain momentum.
The most important support levels to follow on the daily chart for XRP are, respectively; $0.6058, $0.5916, and $0.5777. In particular, a daily bar close below the $0.5916 level could cause XRP’s price to lose both the EMA 7 (blue line) support and lead to a break of the support line, which would result in selling pressure.
The most important resistance levels to pay attention to on the daily chart for XRP are, respectively; $0.6413, $0.6598, and $0.6894. Especially a daily bar close above the $0.6413 level, which has been a significant barrier in the last two rally attempts, will accelerate the momentum of XRP’s price.
XRP/BTC Chart Analysis
The fall in XRP price and the rise in Bitcoin price resulted in a significant breakout on the XRP/BTC chart. Accordingly, a breakout of the falling channel formation on the daily XRP/BTC chart has occurred, which could lead to a significant loss of value for XRP against Bitcoin.
The most important support levels to follow on the daily XRP/BTC chart are, respectively; 0.00001400, 0.00001340, and 0.00001285. In particular, a bar close below the 0.00001400 level, which has been a significant support in the last bar formations, will lead to a decline in the XRP/BTC chart.
The most important resistance levels to watch on the daily XRP/BTC chart are, respectively; 0.00001467, 0.00001529, and 0.00001590. Especially a daily bar close above the 0.00001529 level will facilitate Ripple’s gain in value against Bitcoin.