XRP Faces One Last Resistance at 100 DMA Before a Full Scale Rally
Ripple has been one of the most underperforming cryptocurrencies in the leader segment. Of course, there can be multiple reasons for the same in news and theoretical information. But when it comes to clarity on its technical possibilities, indicators work astronomically and predict further price action.
XRP Cryptocurrency Price Analysis
XRP is juggling between its immediate resistance, strong buying momentum, and 100 days moving average line. Concerning the previous XRP price action we have witnessed, there is a strong possibility of reaching $1 when we take cues from its technical indicators. Be it RSI, MACD, trendline, or increasing volumes, all are pointing towards a bigger and higher target.
Immediate Resistance: $0.77
Strong Resistance: $1.04
Strong Support: $0.51
100 Day Moving Average: $0.77
200 Day Moving Average: $0.93
XRP has developed strong support from $0.50 levels and has bounced twice from those levels. Once on June 22, 2021, and then again on 21st July 2021. The price action on daily charts are indicating signs of difficulty in breaking the immediate Resistance of $0.77, and we can see large wicks on all the day candles from July 29 till date. Being a new month, XRP should get some new investor sentiments which will help it scale past the $1 physiological level.
RSI on the current level is close to overbought zones, indicating the buying action at these prices. Although it’s close to being declared overbought, it is a sign that more and more people are buying this crypto asset than selling it. The last time we witnessed XRP trading at such RSI levels was on May 01, 2021, when trading at $1.70 levels.
100 Day moving average is the price average of approximately three months. Retesting and consolidating at these levels is a sign of further positivity. Consistent back-to-back green candles on daily charts carry a risk of sudden profit bookings, but consolidation gives rise to the opportunity for a steady breakout or breakdowns.
The 100 DMA and immediate resistance have merged, creating a superior resistance for XRP to overcome. Based on our XRP price prediction, it may take some weeks to cross this level. We may also get opportunities to further average XRP before a breakout buying opportunity is presented in front of you.
XRP is trading on the upper band of the 20 SMA, indicating a positive action of this cryptocurrency which supports our positive outlook on XRP. On the other hand, we can see the widening of Bollinger bands, indicating a breakout possibility. Furthermore, MACD on daily charts shows signs of this swing to turn positive on a broader time frame. Since both the moving average lines on MACD have reached a positive axis, the sentiment on XRP can be simply started as bullish.
XRP on hourly charts shows a scope of consolidation to continue for a couple of days before we witness a breakout or breakdown. Till then, buying at lower RSI’s can help accumulate more XRP for better profit margins. RSI on hourly charts is close to 50 on charts with MACD being on the negative axis.