The XRP rate has approached a key barrier. Will the price rise to parity with the dollar?
Date: 2023-07-21 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
On July 13, the XRP rate updated its annual high at 0.938. Let's figure out whether the coin will be able to enter a sustainable rally, or if the bullish momentum has already been lost.
The Ripple (XRP) rate broke through the 700-day resistance line and briefly looked into the area above $0.9. However, it was not possible to gain a foothold at this height: since then, XRP has returned to $0.80 and entered the range.
Technical picture
On the weekly chart, after the breakdown of the 700-day descending resistance line, a bullish picture for XRP is formed. Breakouts of such long-term structures often lead to large-scale price movements.
After breaking the horizontal resistance in the $0.54 area, a large bullish candle formed on the chart, and the price tested resistance at $0.90. Break it the first time and XRP entered the range limited by the mentioned resistance and support around $0.80.
The Relative Strength Indicator (RSI) on the weekly chart indicates the possibility of further growth. An RSI value above 50 indicates that the market is dominated by buyers, and an upward trend confirms a bullish trend.
When the XRP rate returns to $0.90
The short-term charts show that after testing the annual highs, the price broke through the descending resistance line and confirmed it as support. Despite maintaining an upward trend, the XRP rate is moving within a parallel channel. As a rule, such patterns indicate an inevitable correction.
Now the XRP rate is consolidating at $0.83. This is where the upper border of the channel and the horizontal resistance line pass. The further development of events depends on whether the price will be able to overcome this barrier.
A successful breakout would bring XRP back to the long-term resistance at $0.90. However, in the event of a pullback, the price will go down to the lower boundary of the channel and, possibly, to the long-term support at $0.54.
Thus, from a technical point of view, the fate of XRP depends on the outcome of the attack on the nearest resistance. Fundamentally, the trigger for a breakthrough may be a new twist in the case of Ripple against the SEC. At the last meeting, the court did not recognize XRP as a security, but it is too early to put an end to this case.
