- Summary:
- Ripple price found enough bids last Friday to bounce off support at a previous trend line. Are there enough buyers to fuel its rally to $0.3000?
On the daily time frame, we can see that ripple price found enough buyers in Friday’s trading to close higher. A bullish candlestick materialized just above a broken trend line which previously provided ripple price with resistance on June 25 and November 7. The trend line has now turned into support at $0.2174 but it’s worth noting that XRPUSD faces resistance at the 100 SMA now. A strong bullish close above $0.2500 is needed in order for ripple price to rally to $0.3125 and test its previous highs.
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A closer look at the hourly time frame reveals that XRPUSD is testing support at the 23.6% Fib level (drawing the Fibonacci retracement tool from the low of January 26 to the high of January 27). This price, around $0.2280, also looks to coincide with the 200 SMA. Reversal candles around this area may hint that there are enough buyers in the market to possibly push ripple price higher. In fact, it still has room to trade lower to $0.2230 and test support at the 100 SMA. However, a close below this price may mean that sellers are more dominant. XRPUSD may soon fall to its January 24 low at $0.2130.