XRP Price Prediction: What’s Next For Ripple After Defending This Crucial Support?
- XRP loses ground from $0.68 weekly highs but holds support at $0.62.
- A confirmed break above the 200 SMA could renew Ripple’s uptrend to $0.7.
Ripple has a great start to the week, where bulls extended the recovery from lows of $0.52 to highs around $0.68. Before the rally, XRP and the crypto market at large experienced the first massive selloff in July, which broke a long stalemate between the bulls and the bears.
Ripple widened the gap from July highs of $0.7 to test support at $052. The buyer congestion at this zone was key to the upswing that followed and nullified calls for XRP to explore areas toward $0.45.
In the wake of the recovery to $0.67, Ripple has retreated to $0.61. However, it is trading at $0.62 at writing. The losses also cut short Bitcoin’s majestic spike to $40,000, allowing bears to swing back in control. Support toward $36,000 has been tested while bulls focus on heading back to $40,000. On the other hand, Ethereum failed to break above $2,400, resulting in losses toward $2,100.
What Ripple Must Do Regain The Uptrend’s Momentum
The cross-border money transfer token is trading within the confines of an ascending parallel channel, as seen on the four-hour chart. The lower boundary support protects Ripple’s downside in conjunction with the 100 Simple Moving Average (SMA). Therefore, the bulls bid for highs above $0.7 is not out of order yet, at least with these buyer concentration zones in place.
Marginally above the price, the 200 SMA limits the price action. Currently, bulls are working tooth and nail to overcome this barrier. Trading above this moving average will clear the path for more gains. Besides, trading above the channel’s middle boundary may catapult Ripple to $0.7.
XRP/USD four-hour chart
Looking At XRP Price Bearish Picture
The Moving Average Convergence Divergence (MACD) indicator has a vivid bearish signal in the exact timeframe. Investors seem to have been compelled to offload their bags as the 12-day EMA crossed below the 26-day EMA. Besides, the bearish leg will stretch further as the MACD closes the gap to the mean line and perhaps crosses into the negative territory.
At the same time, failure to close the day above the channel’s lower edge will add credence to the bearish outlook, with more sell orders triggered. Hopes for the uptrend resuming will also diminish if the support at $0.6 shatters.