XRP rallies above $0.20, but isn’t out of the woods yet unless it clears resistance at a key technical level
The cryptocurrency market is currently showing signs that it will continue extending gains made over the past 48 hours, with uptrend momentum seeing XRP crack $0.20.
Chainlink and Dogecoin have been standout performers with their prices on a streak this week. Even Bitcoin, which has stalled in a range above $9,000, has broken above $9,400 in the past 24 hours to prepare for a run to $10,000 — a tantalising possibility near term.
For Ripple, the XRP/USD pair has traded above the $0.20 mark for the first time since it dropped below the level back in April.
As of writing, the price of XRP has surged 3.6% today, adding to the 9% gained in the past 48 hours to trade at $0.205. The next target for buyers is to push prices above $0.21, which incidentally is a key level that has seen sellers violently repel bulls since early May.
Some analysts have made the call that XRP’s short term surge will likely continue. However, the upside will bring into the picture a technical indicator that marks the rejections at the $0.21 level.
While XRP/USD bulls are holding the advantage going into the later trading sessions, slight selling pressure means a breach above the 50-day moving average may not be enough to carry them past $0.2079.
If the upside takes buyers above this, the technical picture on the daily charts shows that XRP/USD has its 200-day EMA poised for further price action.
According to one prominent crypto trader, this area has recently provided the tipping zone for violent dips in the token’s price.
Cheds has noted that if prices hit the XRP/USD price hits the 200-day MA, his next trade move would be to short it.
The coin has built support above $0.20, likely to be enhanced by the upturned RSI on the four-hour chart. But even without hitting the 200-day MA, XRP/USD may face a decline to levels around $0.18-$0.17 if bulls fail to defend gains above $0.20.
In the near term, traders will thus be focused on the trend established at current price levels. What happens in the broader crypto market in terms of general sentiment as well as Bitcoin’s next steps could be vital for XRP in the short term.