Most markets have rallied since taking a hard jolt all weekend. Bitcoin (BTC) fell $ 1,400 below the $ 11,000 level in minutes, liquidating $ 1 billion futures in the process.
However, one of the most reliable currencies of the past few days has been Ripple’s XRP token as it has risen 40% over the past seven days and more than 70% from recent lows of $ 0.30, as in previous technical XRP Analysis expected.
After the price target is met, let’s look at the charts to see where the XRP price could go next.
XRP is gaining more than 70% towards a critical resistance of $ 0.30
XRP price reversed support / resistance on July 19 at $ 0.185, whereupon a clear breach of the 100 and 200 day moving averages (MAs) occurred. The injury resulted in a massive recoil in the $ 0.30 area, an increase of over 70%.
Looking at the charts, it is unlikely that the next XRP will resume in the short term. The $ 0.30 area is a major resistance area that is unlikely to break all at once, especially after XRP price has already seen a massive rally.
Important levels to watch
The breach of the 100-day and 200-day moving averages brings XRP / USD into bullish territory and declines should be viewed as a buying opportunity.
Given Saturday’s massive decline, XRP has already tested the $ 0.245 support level, although further testing of that level was not ruled out. Critical support areas – and potential buy declines – are at $ 0.20750 to $ 0.21250 and $ 0.24250 to $ 0.24750, respectively.
The next areas of resistance are between $ 0.46 and $ 0.50 after this critical zone of $ 0.30. Likewise, the next rally in XRP is likely to continue at these levels.
The BTC pair has been on its way down for more than 2 years and even lost the critical support level of 0.00002400 sats.
However, in the recent price action, XRP broke this level and is moving towards its next resistance zone at 0.00002800 seats. Hence, the same result can be drawn from the BTC pair as the USDT pair. In other words, the Bitcoin pair is unlikely to go any further up. Rejection is more likely as price has pushed into this resistance level in a vertical line.
Critical values to maintain are the 100 and 200 day moving averages that XRP has violated and should now be converted into support. This is also in line with the critical support level of 0.00002400 seats.
What are the XRP / BTC scenarios?
The most likely scenario is a correction towards the 0.00002400 seating area.
Such a correction is consistent with a major correction in the cryptocurrency markets and is considered healthy.
If the XRP price rejects the resistance zone between 0.00002800-0.00002900 SATS, the key level to watch is 0.00002200-0.00002400 SEATING AREA. Throughout the first half of 2020 and throughout 2019, the XRP price found support at 0.00002400 sats. To regain and confirm this level of support, the upward trend needs to continue.
The next rally should lift the XRP towards 0.00003700 sats. The second scenario would be an immediate breakout through the 0.00002800 resistance zone.
Such a scenario is less likely as XRP is headed for this resistance all at once, which usually leads to violent rejection.
However, in the event of a breakout, a reversal of support / resistance from 0.00002800 XRP at 0.00003700 Sats is likely to push towards the next resistance area.