Key Takeaways:
The price of XRP is currently consolidating above the $0.5080 support zone.
On the daily chart, there is a significant rising channel with support at $0.5300.
If the price is able to break above the $0.5600 resistance, it could see bullish momentum.
XRP Price Prediction
XRP has been trading within a narrow range above $0.500. In order for the price to start increasing steadily, it needs to establish itself above the 50-day simple moving average (blue line).
Obstacles for XRP Price
Following a strong rejection near the $0.6660 level, the XRP price experienced a bearish reaction. It fell below the $0.6250 and $0.600 support levels. However, the bulls were able to defend the $0.500 support level.
A bottom was formed at $0.5086 and since then, the price has been consolidating. Meanwhile, Bitcoin and Ethereum have seen bullish movements. XRP’s price is currently consolidating near the 23.6% Fibonacci retracement level of the downward movement from the $0.6660 swing high to the $0.5086 low.
XRP Price Daily Chart
The daily chart shows that the XRP price is trading within a narrow range and is facing strong resistance near the 50-day simple moving average (blue line) and $0.5600. For the price to start increasing steadily, it needs to break above the $0.5600 resistance zone.
The next key obstacle is located near the $0.5880 level. The first major resistance level could be the 61.8% Fibonacci retracement level of the downward movement from the $0.6660 swing high to the $0.5086 low, which is at $0.6060.
If the price is able to convincingly move and close above the $0.6060 resistance zone, it could potentially reach the $0.6660 level. Further gains may open the door for a test of $0.6850. The next significant pivot zone is at $0.7200, and if the price surpasses this level, it could surge and test $0.8800.
Possibility of More Downsides?
On the other hand, if the XRP price fails to break above the $0.5600 resistance zone, it may react with a downward movement. Immediate support can be found near the $0.530 level. The daily chart reveals the formation of a crucial rising channel, with support at $0.5300.
The initial major support level is at $0.5080. If the price breaks below this support, it could potentially drop towards the $0.4450 support level. The next significant support is near the $0.4320 level, and if the price falls below this, it may test the $0.4020 support. Further losses could lead the price towards the $0.3850 level or even $0.3720.
Overall, the XRP price is currently consolidating above the $0.530 and $0.5080 support levels. In order to gain bullish momentum, the price needs to settle above the $0.560 resistance level.