Ripple price traded higher recently and broke the $0.8380 resistance against the US Dollar. XRP/USD is struggling to move above $0.8620, therefore, can it hold gains?
Key Talking Points
- Ripple price is trading above the $0.8380-0.8400 support area against the US Dollar.
- There was a break above a contracting triangle with resistance at $0.8460 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
- The pair is trading above the 100 simple moving average (2-hours), but it is struggling to break the $0.8620 resistance.
Ripple Price Forecast
This week, there was a decent rise in Ripple price from the $0.7620 support area against the US Dollar. The XRP/USD pair moved higher and succeeded in surpassing the $0.7800 and $0.8000 resistance levels.
Looking at the chart, there was also a break above the 23.6% Fib retracement level of the last drop from the $0.9642 high to $0.7611 low. More importantly, there was a break above the 100 simple moving average (2-hours) and the $0.8380 resistance.
Buyers gained traction, opening the doors for more upsides above a contracting triangle with resistance at $0.8460 on the 2-hours chart of the XRP/USD pair. However, the upside move was capped by a major resistance near $0.8620-0.8640.
The stated resistance zone is near the 50% Fib retracement level of the last drop from the $0.9642 high to $0.7611 low. Therefore, a break and close above $0.8620 won’t be easy.
Once the price settles above $0.8620, it could accelerate towards the 76.4% Fib retracement level of the last drop from the $0.9642 high to $0.7611 low at $0.9200. Above this last, ripple price is likely to retest the last swing high of $0.9642.
On the downside, the price remains supported above the 100 simple moving average (2-hours) and $0.8400. If it fails to stay above the 100 SMA, there may perhaps be an extended decline towards the $0.8000 level.
The overall bias is positive, but a break above $0.8620 is must for further gains in XRP/USD.
Trade safe traders and do not overtrade!
*The market data is provided by TradingView.
