Can Ripple Bulls Push Toward $1 or is a Correction Imminent?

18 July 2023

in XRP

Reading Time: 3 mins read

Ripple’s price has experienced a significant surge after finding strong support around the 100-day moving average at $0.497. It is now approaching a crucial resistance level at $0.85, indicating a prevailing buying pressure in the market and a positive outlook for Ripple’s medium-term prospects.

Ripple Price Technical Analysis

By Shayan

The Daily Chart

Analyzing the daily chart, it is apparent that the XRP price increased after finding support at the 100-day moving average. However, it now faces a strong resistance zone at $0.85, characterized by high selling pressure and increased supply.

This development suggests a bullish sentiment among traders, increasing the likelihood of a breakthrough above the resistance region. However, it’s important to note that every significant upward movement is typically followed by a consolidation or correction phase, and Ripple’s price is no exception.

Therefore, it seems likely that the price will enter a short-term correction phase, accompanied by higher volatility and pullback periods before the next significant upward movement occurs.

Source: TradingView

The 4-Hour Chart

On the 4-hour chart, it can be seen that the price has successfully broken above the upper edge of a channel, evidenced by a large green candle resulting from a recent explosive rally. However, for a valid breakout confirmation, a pullback to the broken level should occur.

Therefore, based on the price action, it appears more likely that the price will retrace back to the upper boundary and complete a pullback. If this occurs, the market can expect the bullish rally to continue, reaching higher resistance levels.

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However, in the event that the recent breakout proves to be false, Ripple may face significant rejection and a subsequent decline.

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Source: TradingView

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Cryptocurrency charts by TradingView.

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