Key Takeaways:
- XRP price is in the final stage of a major breakthrough with resistance at the 50-day simple moving average (blue).
- A crucial contracting triangle is forming with resistance at $0.530 on the daily chart.
- The price could surge if it settles above the 50-day simple moving average (blue) and $0.5350.
NEW DELHI (CoinChapter.com) — XRP is about to make the next major move. A close above the $0.5350 and $0.550 levels could start a fresh rally.
XRP Price Nears Crucial Breakout
In the past few analyses, we saw a crucial contracting triangle on the daily chart of XRP. The price remained in an important contracting range and stayed below or near the 50-day simple moving average (blue) and the 50-week simple moving average.
It seems like the price is now nearing a breakthrough. The price is now consolidating near the 50% Fib retracement level of the downward move from the $0.5707 swing high to the $0.4880 low and underperforming Bitcoin and Ethereum.
More importantly, the price is about to break the highlighted contracting triangle on the daily chart with current resistance at $0.530. The first major resistance is near the $0.550 level.
The 76.4% Fib retracement level of the downward move from the $0.5707 swing high to the $0.4880 low is also near the $0.550. zone. A close above the triangle resistance might send the price toward the $0.550 resistance.
The main resistance is still near the $0.570 zone. A daily close above the $0.570 resistance might start a fresh surge. In the stated case, the price might climb and test the $0.6660 resistance.
In the stated case, there are high chances of a move toward the $0.700 resistance zone. The next stop for the bulls might be $0.750.
Downside Flush?
Conversely, the XRP price might struggle to clear the $0.5350 and $0.550 resistance levels. Immediate support sits near the $0.510 zone and the triangle lower trend line.
The first major support sits at $0.500. The next key support is near the $0.490 level, below which the price could slide and test the $0.4680 support. A downside break below the $0.4680 support might set the pace for a major decline. In the stated case, the price may decline toward the $0.420 level.
Overall, XRP price is about to make the next major move. A close above the $0.5350 and $0.550 resistance levels could spark a major increase. If not, it might dive and test $0.400 in the coming days.
