Ripple Technical Analysis: XRP Flirts With the 200-day SMA.
Daily Ripple XRP Price Analysis
- The Bollinger Band has stopped constricting, which shows that the consolidation period is over.
- The 4-hour price is struggling with resistance at the 20-bar SMA.
After going through a catastrophic collapse towards the end of 2020, the price was going through a lengthy consolidation period due to the SEC lawsuit. The buyers took back control after two straight bearish days and pushed the price above $0.30.
Ripple Ends Consolidation?
Ripple was trending horizontally above the 200-day SMA before it below this level. However, the buyers retook control and managed to push the price above this level. The MACD shows sustained bullish momentum, which shows that further price growth is expected.
Image: XRP/USD daily chart
Prior to this Tuesday, the Bollinger Band was going through a lengthy contraction period, which shows that the price was going through a consolidation period. However, with the latest bullish price action, the band has stopped contracting. The MACD is trending in the green, so further positive action is expected.
Now, let’s decrease this timeframe from 1-day to 4-hours.
Image: XRP/USD 4-hour chart
Now, we can clearly see some levels that the buyers will have to conquer to continue their resurgence. Firstly, they must overcome the 20-bar SMA ($0.3086). After that, the price has to reach $0.34 to reverse the market trend from bearish to bullish. Finally, the last level is at the 200-bar SMA ($0.3742).
Key Price Levels To Watch
The bulls face resistance at the $0.358 resistance (as seen by price history). The price needs to overcome the 20-bar SMA ($0.3086) to continue its upward momentum in the shorter timeframe.