This Crucial Resistance Could Determine XRP Price Trend

XRP is the native token of Ripple Labs, founded by Jed McCaleb and Chris Larsen. It provides transactions for a global payments network at a trivial cost. The XRP price has consolidated between $0.32-$0.40 since a sharp fall on Nov. 8. While there are no immediate breaking XRP news, there are rumors of a big announcement in the coming weeks. In other related XRP news, Ripple Founding Member Asheesh Birla was appointed as an advisor to Panther Ventures.

XRP Price Bounces at 195-Day Support

The XRP price has traded above an ascending support line since reaching its yearly low on June 14. So far, the line has initiated six bounces (green icons). Most recently, it caused an upward movement on Dec. 19 which is still ongoing.

Interestingly, the bounce coincided with a massive XRP transactions coming from several whales, something which was expected to cause a downward movement. The largest of these was a $112 million transaction from Binance to an unknown wallet. If the upward movement continues, the closest resistance area would be at $0.385. Additionally, it seems that the XRP price is trading inside a symmetrical triangle.

Since the line has been in place for 192 days, a breakdown below it could trigger a price collapse. Still, the daily time frame is not sufficient in determining if the bounce will continue or if the breakdown will transpire instead. Besides the fact that the triangle is considered a neutral pattern, the daily RSI is also neutral, since it is increasing but it is still below 50. 

If the bounce continues, the XRP price could reach the $0.385 area. If a breakdown transpires, the most likely future price projection would be a drop below $0.30.

Short-Term Rally to $0.385

The six-hour chart shows that the XRP price broke out from the $0.355 resistance area over the past 24 hours. The breakout was preceded by bullish divergence in the RSI (green line). 

Additionally, the digital asset is following a short-term resistance line, which is currently at $0.375. This increases the importance of the $0.385 area due to this confluence of resistance levels.  

As a result, while an upward movement toward this area is expected, the reaction once the price gets there will likely determine the direction of the future trend. 

To conclude, the main readings for XRP are neutral, failing to decisively provide a direction to the future trend. The reaction once the price gets to the $0.385 area will be crucial in determining if the movement is bullish or bearish.

Source: beincrypto.com