Ripple’s price action has shown signs of possible bullish momentum, hinting that a new impulsive rally may be on the horizon. However, a closer look at technical indicators is needed to determine whether a correction could be looming or if XRP is poised for further gains.
On the daily chart, Ripple recently rallied towards the critical $0.64 resistance level after a pullback to the broken 200-day moving average at $0.54. This resistance level marks a significant barrier for buyers, as it aligns with the price’s prior major swing high. If the bulls can break through this level, a move towards the $0.7440 yearly high is likely, with the potential for a new high to be set. Despite the positive trend, there is a possibility of a temporary corrective retracement due to potential supply near the resistance level and a slight bearish divergence between the price and the RSI indicator.
Looking at the 4-hour chart, Ripple’s bullish momentum faced selling pressure at the $0.64 resistance level, leading to the formation of an ascending wedge pattern. The price is now at the narrowest range of the wedge pattern, indicating a breakout is imminent. However, there is a bearish divergence between the price and the RSI indicator on the 4-hour timeframe, suggesting a potential rejection followed by a short-term consolidation correction. If the price breaks below the wedge’s lower boundary, a drop towards the $0.55 threshold is possible. In the event of a more sustained corrective stage, the 0.5 ($0.5) and 0.618 ($0.47) Fibonacci levels are potential targets for Ripple.
In summary, Ripple’s price action shows signs of bullish momentum but also hints at the possibility of a corrective retracement due to resistance levels and bearish divergences in technical indicators. Traders should keep a close eye on key support and resistance levels, such as $0.64 and $0.55, to anticipate potential price movements. Overall, the future direction of Ripple’s price will depend on how it reacts to these critical levels and whether it can sustain its positive trend towards new highs.
