Ripple (XRP) broke through the 700-day resistance line and briefly peeked into the area above $0.9. However, it failed to gain a foothold at this height: XRP has since returned to $0.80 and entered a range of.
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Technical picture
On the weekly chart, after breaking the 700-day descending resistance line, a bullish picture is forming on XRP. Breakouts of such long-term structures often lead to large-scale price movements.
After the breakout of horizontal resistance at $0.54, a large bullish candle formed on the chart and the price tested resistance at $0.90.
After breaking the horizontal resistance at $0.54, a large bullish candle formed on the chart and the price tested the resistance at $0.90. Break it the first time and XRP entered a range bounded by the mentioned resistance and support around $0.80.
Weekly chart of XRP/USD. Source: TradingView
Relative Strength Indicator (RSI) on the weekly chart indicates the possibility of further growth. RSI value above 50 indicates that the market is dominated by buyers, and the upward direction confirms the bullish trend.
When the XRP rate will return to $0.90
The short-term charts show that after testing the yearly highs, the price broke the descending resistance line and confirmed it as support. Despite maintaining upward momentum, the XRP rate is moving within a parallel channel. Typically, such patterns indicate an imminent correction.
The XRP rate is now consolidating under $0.83.
The XRP rate is now consolidating at $0.83. Here passes the upper boundary of the channel and the horizontal resistance line. The further development of events depends on whether the price will be able to overcome this barrier.
Two-hour chart of XRP/USDT. Source: TradingView
A successful breakout will bring XRP back to the long-term resistance at $0.90. However, in case of a pullback, the price will descend to the lower boundary of the channel and possibly to the long-term support at $0.54.
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So, from a technical point of view, the fate of XRP depends on the outcome of the attack on the nearest resistance. Fundamentally, the trigger for a breakout could be a new twist in Ripple’s case against the SEC. At the last hearing, the court did not recognize XRP as a security, but it’s too early to put an end to the case.