Ripple has established base support after witnessing a serious price fall late last year. Following the past weeks of increase, it has bounced off well and is now poised for a more massive rally.
During the mid-2022 bear cycle, Ripple’s price crashed to the low of $0.3 and bounced higher after moving sideways for weeks. The price collapsed again in the late year but managed to pin support above that low level.
It appeared to have found a bottom with a proper double-bottom pattern, which is already building up for a big price movement. We can expect that to come into play in the next couple of weeks.
From a technical perspective, the market structure suggests having reached a bottom as it slowly moves out of the bear cycle, which started in 2021. A lot of buy orders have been filled around the low as more demand is expected to fuel a huge surge in volatility.
Even if the price plunges any moment from now, it would only set up a pullback for a discount. XRP needs to collapse below the base support before this bullish signal becomes invalidated. And that may happen if the XRP market cap drops below $10 billion.
Ripple’s Key Level To Watch
The setup looks so bullish on the daily and weekly time frame. As we can see, it targets the $0.44 level in the ongoing rally – although it currently appears slow.
The next resistance level to watch out for is $0.485 and $0.50 from a short-term perspective. The $0.55 resistance remains a crucial level to watch for a long-term breakout.
On the other hand, the key area to watch for a pullback is the current daily low of $0.397, followed by $0.373. Below it lies $0.35. The $03 level remains the last defense line for the bulls in case of a collapse.
Key Resistance Levels: $0.44, $0.485, $0.55
Key Support Levels: $0.397, $0.373, $0.35
- Spot Price: $0.42
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: andreystv126/123RF // Image Effects by Colorcinch
