XRP surged to highs of $0.79 amid a parabolic rally that could see bulls target $1.00 short term
XRP rallied more than 60% in 24 hours to see it trade as high as $0.79 against the US dollar. The mammoth upside took the cumulative weekly rally for the digital asset to over 150%, making XRP the best performer among top altcoins by a mile.
At the time of writing, bears are battling to claw back the gains, with XRP/USD now trading around $0.71.
While a rally to $0.79 level remains the short term target, bulls will likely have to defend gains above $0.65 to remain on top. Otherwise, selling pressure may mean a retreat to $0.50 and possibly the long term $0.27 marked by the 100-SMA (weekly chart).
Looking ahead, the daily chart suggests the immediate resistance area is around $0.73. Above this, bulls will need to break to $0.75 and $0.79 (intraday high).
If bulls break above these levels, the 127.2% Fib retracement ($.093) and 141.4% Fib retracement ($1.00) provide the next barriers.
But with the RSI extended into overbought territory, a downside might be the path of least resistance. As such, the price might drop to the 78.6% Fib retracement level ($0.675) and then support at the 61.8% Fib level ($0.58).
Beneath this support area, bulls will look to absorb pressure at the 50% Fib retracement level ($0.52) and 38.2% Fib level ($0.46).
XRP/USD daily chart. Source: TradingView
On the weekly chart, XRP/USD has continued higher after breaking above a descending trendline and the 100-day simple moving average. If the price settles above the 78.6% Fibonacci retracement level ($0.65), a retest of the $0.79 resistance area is likely, with further gains taking prices to highs of $0.83 and then $0.95.
XRP/USD price weekly chart. Source: TradingView
However, the weekly RSI is overextended and increased panic buying could be followed by significant selling pressure.
If XRP fails to clear resistance at $0.73 and drops to $0.65, the likelihood of an extended downside correction could see XRP price settle around $0.52. From here, the next support is at $0.46, with the $0.33 level that had capped 2020 gains before the recent breakout providing another safer landing base for bulls.
Further down on the weekly chart, the 100-SMA ($0.27) and 50-SMA ($0.23) provide long term support levels.