Around mid-May, we saw Ripple (XRP/USD) exploding to the upside, together with the other major cryptocurrencies, like Bitcoin and Ethereum. After the sharp rise, XRP/USD sold off again and found good support slightly below the 0.3500 hurdle, near the 0.3415 mark. This is from where the crypto travelled higher, aiming for its highest point of May, at 0.4756. Also, the price is now trading above its short-term tentative upside line taken from the low of May 10th. Unlike Bitcoin and Ethereum, which have already overcome their mid-May highs, Ripple is slightly lagging behind, but remains on the right course. For now, we will stay positive, at least over the short-term outlook, but wait for a confirmation break above its mid-May high, before getting comfortable with further upside.
A break and a close above the 0.4756 barrier would confirm a forthcoming higher high and invite more buyers into the field. Such an action could clear the path for a move to the next potential resistance area, at 0.5090, marked by the highs of November 18th and 19th. Initially, we may see the price stalling around there, or even retracing back down a bit. But as long as it stays above the previously mentioned upside support line, we will continue targeting higher areas. If this time, the buyers are able to lift the crypto above the 0.5090 barrier, this might lead to a possible test of the 0.5254 zone, which is the high of November 12th.
Both of our oscillators, the RSI and the MACD, are currently in support of the above-discussed scenario. The RSI is above 50 and still points to the upside. The MACD is also pointing higher, by sitting above zero and the trigger line.
On the other hand, a sharp reversal and a break below the aforementioned upside line could raise concerns over Ripple’s short-term upside idea. If the bears manage to grab the steering wheel and push the price below both, the 0.4000 and 0.3940 levels, this would place XRP/USD below the 200-day EMA and could drag it to the next potential support area, at 0.3580, marked by the low of May 23rd. The price might rebound somewhat from there, but if it stays below the 0.4000 barrier, this may result in another sell-off. If the 0.3580 hurdle is not able to withstand the bear-pressure, a break of it could send Ripple a bit lower, to test the 0.3415 mark, which is the low of May 17th.
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