Ripple (XRP) Rallies 10% and Poised To Test $0.20: Here’s Why

Ripple is up around 10% and it broke the key $ 0.1650 resistance zone against the US Dollar. XRP price remains in a nice uptrend and it could continue to rise towards $ 0.2000.

  • Ripple price started a strong rise above the $ 0.1640 and $ 0.1650 resistance levels against the US dollar.
  • The bulls were able to push the price above $ 0.1750 and a high was formed near $ 0.1808.
  • There is a short term contracting triangle forming with resistance near $ 0.1780 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price could correct a few points in the near term, but dips remain supported near $ 0.1700.

Ripple Price is Surging

Yesterday, we discussed the chances of a strong rally in ripple above the $ 0.1640 and $ 0.1650 resistance levels. XRP price did break the $ 0.1650 resistance area to start a solid upward move.

It broke the $ 0.1720 resistance and settled nicely above the 100 hourly simple moving average. The upward move gained pace above the $ 0.1750 level and the price traded to a new weekly high at $ 0.1808.

The price is currently correcting lower and trading below $ 0.1780. There was a break below the 23.6% Fib retracement level of the upward move from the $ 0.1605 low to $ 0.1808 high.

It seems like there is a short term contracting triangle forming with resistance near $ 0.1780 on the hourly chart of the XRP/USD pair. If there is an upside break, ripple price is likely to continue higher above the $ 0.1800 resistance area.

Ripple Price

Ripple Price

In the stated case, the price is likely to surge above the $ 0.1808 high and $ 0.1820. The next major resistance is near the $ 0.1880 level, above which the bulls are likely to aim a test of the $ 0.2000 barrier in the near term.

Downside Correction?

If ripple fails to continue above the $ 0.1780 and $ 0.1800 resistance levels, it could start a downside correction. The first major support is near the $ 0.1705 area. It is close to the 50% Fib retracement level of the upward move from the $ 0.1605 low to $ 0.1808 high.

The next major support is near the $ 0.1650 area (the recent breakout resistance), where the bulls are likely to take a strong stand.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 70 level and it is in the overbought zone.

Major Support Levels – $ 0.1750, $ 0.1705 and $ 0.1650.

Major Resistance Levels – $ 0.1780, $ 0.1800 and $ 0.1850.

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Analysis – NewsBTC

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