Analysis: Ripple (XRP) gains 14%, but encounters resistance
XRP has had a nice rise after reaching a point we noted in a previous analysis. This level (around $0.48) previously proved strong enough to cause XRP to rise 17%. The currency now appears to be falling back a bit. Let’s look at the graphs.
The big picture
We’ll start this analysis with the weekly chart, where each candle represents 7 days. This allows us to look far back in the price and see where XRP used to react. These are indicated in the graph below as gray price levels.
Almost every time XRP arrived at one of these gray zones, it impacted the price. We can leave the upper and lower gray zone for what it is, since the coin will not end up here very quickly, but the middle zone is very important.
This price level is currently the biggest obstacle to not moving further to the upper zone of $ 0.90. The price moves just below this, while it finds support at the lower blue line of $0.48. The currency plays a game of ping-pong between these price zones.
We already warned about this in the previous analysis, where we said that XRP could find support at this blue level. The response has now been there, but the currency was rejected in the gray zone. It can still happen that the coin moves to the upper blue line of 0.57, but to analyze that we need to take a ‘smaller chart’.
The price almost reached $0.56
Below we see the daily chart, where each candle represents 24 hours (instead of 7 days). This allows you to see the past price action in more detail. This way we can also clearly see the origin of the two blue lines: a previous high and a previous low.
These are places that often cause changes in the price. It was therefore likely that XRP would see a small rebound at the lower blue line. Especially since the coin had done this a few times before. For this reason, we outlined the orange line scenario, where the coin would continue to move between these blue lines.
The coin has risen, but not all the way to the top blue line. XRP found resistance at the gray zone around $0.56. However, this does not mean that the currency cannot continue to rise. A small push would be enough to reach that target of $0.57.
It would be nice if the currency could also rise beyond the gray zone. In that case, the coin will have a bright future as this is the main resistance. If XRP falls further from here – which is still possible – then the price level of $ 0.47 would have to prove itself once again. Therefore, keep a close eye on the price and these price levels!
