XRP has been among one of the worst-performing cryptocurrencies since the fall of April – May 2021. What started as a profit booking in the broader crypto market turned into a spiral of SEC lawsuits and a host of bad news for Ripple’s cryptocurrency. While there have been numerous news related to expanding Ripple’s blockchain technology by Amazon, nothing is clear yet.
Not just XRP, the entire crypto market has turned green, the reason still unknown; it could be the whales or institutions. But who knows how long this rally can last. Cryptocurrency price prediction is a totally different ball game. While one can state XRP will go $10 in the next five years, only technical analysis can clarify if it’s a bull run or just a retracement.
After making an all-time high of $1.98 on April 14, XRP fell but rose again to $1.81 before going downwind. It marked the three-month low of $0.47 on 22nd June. Since getting support at lower levels is trying to move up. After eight trading days and two swings, the XRP price reached $0.75 on June 29, which is a 59% rise from its low on June 22. Such a move within a week’s time frame can certainly excite the entire crypto supporters.
XRP Technical Analysis
100 Day Moving Average- $1.06
200 Day Moving Average- $0.73
Immediate Resistance Levels- $0.75
Immediate Support Levels- $0.50
XRP has taken support from its historical support line, which is the exact place from where it rallied in April 2021. With a huge upside move on 29th June, XRP is currently staring at the resistance near the 200 day moving average. It will be quite difficult for XRP to close above this resistance line in the current swing. But if it attempts to break this resistance in the third swing, it will be a much more bullish action on the daily charts. After clearing the resistance at $0.75, the next resistance to face is placed around $1.06, which is almost 40% above the current levels.
With a positive risk to reward ratio, XRP can trade above the 100-day moving average to reclaim its long traded value above $1.5. This current rally has also received a fair share of support from the MACD indicator, which indicates a rise of new bull run. If the green candles visible on the MACD indicator continue rising, it would be a sign of a clear uptrend.
As long as the dark green candles continue to emerge, it will indicate the continuation of the uptrend. Still, as it starts to turn light in color, MACD will indicate a stalling of an uptrend, trend reversal will be indicated with the next lot of emerging red candles after the crossover. Other than MACD, the lowering volumes could be an indication of holding positions being made at current levels.
XRP in the current swing moved up by above 10% and is currently headed towards the second swing. All of this coincides with the resistance around the 200 DMA and slight profit booking after an awesome run on June 29, 2021. Based on our XRP forecast, if there is a bullish condition in the XRP valuations, it should make another attempt at closing above the 200 day moving average.
Heikin Ashi charts indicate a profit booking scenario since the dips are not continual and closing within a tight range. The formation of lower wicks is an indication of a buying action from lower levels. Once XRP reaches above the 200 DMA, it will be a perfect recipe for an excellent upside run.