What analysis would you like to see? Every week we conduct a survey on our social media. Here you can vote for the next altcoin review. Ripple (XRP) emerged as the winner this time around. Let’s look at the course.
big upward trend
Let’s take a look at the XRP monthly chart. This can tell us more about long-term price trends. In the chart below, each candlestick represents – you guessed it – a month. At first glance, we see two main levels (shown as blue zones). In the past, these zones were very important for price development. Both have a support and resistance function.
Furthermore, yellow arcs are drawn to represent the overall trend of XRP. The coin reached a higher high in 2021, while a higher low now appears to be forming. On the monthly chart, this is great news as it means the overall trend for XRP is bullish.
However, the price is currently between the two blue zones. The price has gone up and down a few times. To better analyze what XRP is going to do in the near term, we need a smaller chart. Now let’s look at the daily chart. Each candle here represents 24 hours.
a new resistance
Here we see the same blue zones as in the graph above. Only here is it better to see how they offered support and resistance. But beyond that, another important price level becomes clear. This can be seen in the image below as an orange zone and currently serves as resistance. Unfortunately that was too strong to continue.
The question of whether XRP moves to the upper or lower blue zone first is best answered by this orange zone. If Ripple breaks them, chances are the price will continue to rise in the higher range (around $0.55). This is the most positive short-term scenario.
The downside scenario has to do with the orange line at $0.365. This is the price of the previous low. In order not to fall further and thus enter the lower blue zone, XRP must stay above it. If the price drops below, XRP will reach a new low and we will see a short-term downtrend, falling to around $0.33.
It will take some time for XRP to make that decision, but the price already seems headed for a new low. Still, the crypto market can surprise everyone and the positive scenario is certainly achievable. In any case, Ripple is unlikely to break out of the blue zones anytime soon.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
