XRP Price Faces Obstacles, Potential Breakout Ahead
XRP, the digital currency, is currently trading within a narrow range below $0.550. However, there is potential for a significant surge if the price manages to surpass the levels of $0.550 and $0.570.
In previous analyses, we highlighted the importance of exceeding the 50-day and 50-week simple moving averages (SMA) for XRP. Unfortunately, the price struggled to maintain a position above these SMAs and gradually declined, performing worse than Bitcoin and Ethereum.
The most recent peak was observed near the $0.570 resistance area, after which the price dipped. It fell below the $0.550 support zone and remained beneath the 50-day SMA. Additionally, it dropped below the 50% Fibonacci retracement level of the upward movement from the swing low of $0.4654 to the high of $0.5718.
Fortunately, the bulls were active near the $0.490 support zone and the 76.4% Fibonacci retracement level mentioned above. However, the price is currently struggling to initiate a fresh upward movement. On the daily chart, an important contracting triangle is forming, with resistance at $0.5380. Immediate resistance on the upside is located near the 50-day SMA at $0.520.
The first significant resistance level can be found near $0.5350 and within the triangle region. If the price manages to break above this resistance, it could potentially reach the main hurdle at $0.570.
A daily close above the $0.570 resistance level could trigger a fresh surge, with the price potentially testing the $0.6660 resistance. If the bulls succeed in pushing the price above this level, there may be a steady increase in the days to come, with the next target being $0.750.
However, if the XRP price struggles to surpass the $0.5350 and $0.550 resistance levels, it may experience difficulties. Immediate support can be found near the $0.500 zone and the lower trend line of the triangle. The first major support level is situated at $0.490, while the main uptrend support level is near $0.4650. A downward break below the $0.4650 support could lead to a significant decline, potentially reaching the $0.40 level.
Overall, the XRP price is currently poised for a potential breakout above $0.5350 and $0.550. If the bulls are successful, the price could surge and test the $0.6660 resistance in the coming days.