XRP regains the support of $0.4: Should you invest now?

Ripple (XRP) is a digital asset built for global payments. At the time of writing this analysis, XRP/USD is trading around $0.39, which is a crucial level because, in the last year, it worked as a resistance and support for the short term. Between May-June, it was a support, and it broke the level around the last week of June. Until September, it worked as a resistance; after that, it crossed the resistance in the last two months and retraced back to the previous level.

XRP analysis

After the FTX liquidity crunch, the XRP price has broken the previous support of $0.39. Below that, $0.3 worked as strong support in that uncertain time, but now it is recovering smoothly. 

Will XRP plunge and face resistance again around $0.39?  

Based on the technical indicators, we think the XRP price will consolidate within a range because Bollinger Band lacks volatility. MACD and RSI are neutral, suggesting XRP will not cross the $0.4 within the next few days. However, we think it is a good time to invest for the short term with a target of $0.5 because if it breaks the level, it will take less than two weeks to hit $0.5 again.

XRPUSD analysis

On the weekly chart, $0.3 is strong support in the last year, and XRP is forming higher highs on this level, suggesting a bullish momentum, but we think the price will consolidate or form higher highs. Candlesticks are forming in the lower Bollinger Bands that do not suggest an uptrend until the XRP price crosses the baseline around $0.45. MACD and RSI are also neutral. 

Should you buy XRP for the long term?

We think it is the right time to invest with a longer horizon and stop loss around $0.25. However, investing for the short term with a shorter target of $0.5 for the next two months will generate a less risky return from your crypto investment. If you want to know whether it is a worthy investment or not, visit here to find more details about XRP’s future outlook.

It is tough to predict the future of any cryptocurrency. Still, XRP is a fundamentally strong coin with a long way to go because it did not provide good returns in the last two years due to several external and internal reasons.

Advertisement

Indeed, Ripple is a popular platform, and the team is focusing on expanding its use cases so that the native coin XRP price will increase due to high demand in the future. Even big investors are active on Ripple coins, so we get a decent volume on weekly charts. Please follow our website to get the latest update on XRP.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button