How to position your trading account before the XRP price breaks out

  • Ripple price is likely to rally above $0.4228 as technical indicators show signs of buying.
  • XRP price could recover $0.50 in the process.
  • If so, the price of XRP could rise even further next week.

Ripple (XRP) price is poised to rise, propelled by relentless buying from bulls. This is reflected in the Relative Strength Index (RSI) showing no signs of cooling or moving back towards the oversold zone. Price action could pick up speed once it clears above $0.4228, opening space for a 20% rally towards $0.50 and reclaiming a few key support levels along the way.

XRP price is set to overcome a few key hurdles

Ripple price is showing promising signs of further upside as the RSI and price encounter strong support from which to create a platform for upward movement. Price action has been posting higher lows since the start of this week, and further upward compression is now on the way. With the upside pressure mounting, the buyers are gearing up to recover at least three vital pivot levels.

XRP price will first see pressure build to $0.4228, the first historical pivot level nearby. Once this level is tested for support, expect further upside towards $0.50, with the bulls capturing the monthly pivot and the all-time pivot level at $0.48. Heading into the weekend, this will be the optimal position for the bulls to continue reaping gains going forward.

XRP/USD daily chart

On the downside, the downside risk comes from $0.4228, which could prove too big a hurdle to clear. In such a scenario, the bears could match the bullish price action and add to existing short positions, outweighing the buying power of the bulls. This would lead the price of XRP to drop towards $0.3710, and if a little more risk was added, to fall below $0.3043 – a not impossible eventuality in a falling market.

Garland K. Long