After posting massive gains in the prior week, sluggish price action has encroached the cryptocurrency market from all corners. Most crypto assets including XRP are trading range-bound. Recently, Ripple bulls regained partial control pushing the price to highs of 0.2672 before a rejection. Presently, the cross-border token aims for a breakout to $0.3 as XRP/USD bulls confront a key barrier at $0.26 which was established and tested since September 4. From the prior day’s low of $0.2456, XRP recovered nicely to set an intraday high of $0.2646, gaining nearly 2.5% on the day. The XRP market cap stands at $11.61 billion, as calculated from a 45.31 billion free float supply. There has been a total of $3.52 billion in trade volume over the past 24 hours. XRP is now trading at $0.2553 following Ripple purchase of $46 million XRP to boost “healthy markets”, a move to also support its newly launched product, Line of Credit beta. This was noted to be the first time in the third quarter of 2020, Ripple.Inc purchased such an amount despite already owning nearly half of the XRP supply.
*The cross border token aims for a breakout to $0.3 as XRP/USD bulls confront key resistance at $0.26.
*From the prior day’s low of $0.2456, XRP recovered nicely to set an intraday high of $0.2646, gaining nearly 2.5% on the day
*XRP is now trading at $0.2561 following Ripple purchase of $46 million XRP to boost “healthy markets”
Resistance Levels: $0.2600, $0.2500, $0.2400
Support Levels: $0.2300, $0.2201, $0.2120
XRP/USD Daily Chart: Ranging
XRP/USD Daily Chart
As seen on the daily chart, XRP’s price action has been capped under $0.3 since September 3rd. The present price of XRP at $0.2553 bounced from the daily MA 50 support to breach the $0.26 level of resistance in an upside move. Therefore closing above $0.26 would confirm a bullish breakout with price targets beginning to emerge at $0.285 and then $0.3.
On the downside, tentative support is envisaged at the $0.2450 mark which coincides with the MA 50 support. A breach beneath this level is likely to result in a selloff which may cause XRP to seek the next buyer congestion zone at 0.2300 coincidings with MA 200. If it caves in, XRP may test the next support at the $0.2201 level.
XRP/USD 4-Hour Chart: Ranging
XRP/USD 4-Hour Chart
As seen on the 4-hour chart, selling pressure, significantly below $0.27, continues to give buyers a hard time. The rejection from the crucial resistance level at $0.26 may be a bearish signal considering all the previous rejections. Bears are presently looking at the $0.2500 level and next to the MA 200 and MA 50 as support levels.
On the flip side, the breakout to $0.3 could materialize if XRP sustains an uptrend above $0.26. The XRP/USD pair is only bullish while trading above the $0.2500 level, key resistance is found at the $0.2600 and the $0.2700 levels. If the XRP/USD pair closes beneath the $0.2500, sellers may test the $0.2400 and $0.2357 support levels.
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