Extended Ripple Rally Could Result in $1 Breakout

One of the cryptocurrencies that you will find in the market is Ripple (XRP), and there are a number of opinions flying around about it. Some do not believe it has any potential, some consider it as one of the greatest cryptocurrencies to exist, and others don’t bother giving it a thought at all. However, it appears that things might be changing for XRP after all, as even after the weekend session, the cryptocurrency’s value is at the $0.6 mark. Similar to leading cryptocurrency Bitcoin, it appears that XRP is entering its consolidation phase and there are predictions that it will go past the coveted tipping point quite soon.

As mentioned above, the current market price of Ripple stands at $0.6 and the coin is slowly inching its way upward. Within the 4-hour chart, it has a Simple Moving Average of 50. If the crypto wants to trigger the next breakout hurdle, which is at $0.65, Ripple will first have to sustain the upward trend and this involves setting above the mentioned moving average. From this point, the XRP bulls would have to square up in order to reach the $1 mark. Hence, they will first have to push past the $0.7 and then the $0.75 hurdle, respectively.

The RSI, or the Relative Strength Index, of the 4-hour timeframe, highlights that sellers have the high ground at this time. If this negative gradient is maintained by the sellers under the said midline, then there could be a breakdown in Ripple of significant proportions. Nonetheless, people don’t have to fret about this happening just yet. This is because the XRP/USD pair is another key factor that will have an impact on whether Ripple is able to go past the mythical $1 mark. It is essential for this pair to hold above the boundary of the Bollinger Bands, so it will be able to avoid enough losses for completely refreshing the SMA support that’s available at $0.57. 

However, there could also be a breakdown due to the Bollinger Bands’ constriction. If this happens, then all the progress made by XRP from the $0.45 mark will be rendered null and void. The upside is that some selling pressure can be taken off from the market by the 200 SMA. As there is a chance that the XRP might see a correction, it is reassuring to know that the coin will not plummet by that much. As of now, the XRP bull-run seems to be running in tandem with the bull-run of Bitcoin (BTC). 

2020 was undoubtedly a chaotic year and was full of different kinds of problems, but it has turned out to be a productive one for Bitcoin. Even though the coin’s price experienced a catastrophic drop in March, it has made a recovery and has actually reached new highs, albeit briefly. Naturally, when the flagship cryptocurrency is enjoying success in the market, it gives other cryptocurrencies a boost as well and XRP is also benefitting from the uplifting market for now.