The cryptocurrency market is a mixed pattern of red and green. BTC remains on the back foot, trading below $34k. Ripple (XRP) has been in consolidation since Dec. 28 after plunging to bottom lows following the SEC lawsuit. In a narrative change, Ripple began its climb higher on Jan.27 after it embraced support at $0.24, marking three straight days of bullish action. Following the relief rally on XRP/USD to highs of $0.5351, the cross-border token is up by 20.91% on a daily and 23.89% on weekly basis. Ranking 4th largest, the XRP market cap stands at $15.02 billion, as calculated from a 45.4 billion free float supply. At the time of writing, XRP is changing hands at $0.3655 having reached intraday highs of $0.5254. Another class-action lawsuit against Ripple Labs and CEO Brad Garlinghouse has been filed in a Florida district court alleging that the “sale of XRP cryptocurrency tokens to Florida residents” violates Florida securities laws. This follows the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple for issuing a $1.3 billion unregistered securities offering.
*Ripple began its climb higher on Jan. 27 after it embraced support at $0.24
*XRP is changing hands at $0.3655 having reached intraday highs of $0.5254
*Lawsuit against Ripple Labs and CEO Brad Garlinghouse has been filed in a Florida district court
Resistance Levels: $0.7376, $0.6662, $0.5351
Support Levels: $0.3000, $0.2400, $0.2000
XRP/USD Daily Chart: Ranging
XRP/USD Daily Chart
XRP/USD embraced the support at $0.24 on Jan. 27 and started a relief rally on Jan. 28, while continuing to edge higher. On Jan. 29, XRP price rose above the daily MA 200 at $0.3092. Currently, Ripple has edged higher past the critical resistance at the MA 50 ($0.3350) attempting to flip this resistance into support. A daily exit beyond the $0.40 mark could renew buying pressure to $0.60.
On the other hand, if the price turns down from the current level, the bears will again try to break the $0.24 support. If they succeed, this will invalidate the near term bullish outlook. A fresh decline to $0.20 may be possible in this kind of scenario.
XRP/USD 4-Hour Chart: Bullish
XRP/USD 4-Hour Chart
XRP sits atop of robust support range, having flipped the 4- hour MA 50 and 200 into support. The technical set up seen on the 4-hour chart alongside the RSI in positive territory confirms the bullish shift in the price outlook. A sustained breakout on XRP/USD could easily target $0.60. However, bulls need to commit to lifting the price beyond $0.40 for XRP to extend its rally.
On the flipside, barring an extended crypto sell-off, Ripple (XRP) should steer clear of sub-$0.27 levels beneath the MA 50 and 200 close. In case of further declines, support is envisaged at $0.24.The XRP/USD pair is only bullish while trading above the $0.3745 mark, key resistance is found at the $0.60 and 0.6662 levels.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock