XRP Price Faces Crucial Test at $0.385


The XRP (XRP) price is gradually moving higher towards the $0.385 horizontal resistance area. The reaction once it gets there could determine the direction of the future trend.

XRP is the native token of Ripple Labs, founded by Jed McCaleb and Chris Larsen. It provides transactions for a global payment network at a trivial cost. XRP price has been consolidating between $0.32 and $0.40 since a sharp drop on November 8. While there is no breaking XRP news, there are rumors of a big announcement In the next weeks. In other XRP-related news, Ripple founding member Asheesh Birla was appointed as adviser to Panther Ventures.

XRP price bounces off the 195-day support

The XRP price it has traded above a rising support line since hitting its yearly low on June 14. So far, the line has started six bounces (green icons). More recently, it triggered an upward move on December 19 that is still ongoing.

Interestingly, the rebound coincided with a bulk XRP transactions coming from several whales, something that was expected to cause a downward movement. The eldest of them was a $112 million transaction from Binance to a stranger wallet. If the bullish move continues, the nearest resistance area would be at $0.385. Furthermore, it appears that the XRP price is trading within a symmetrical triangle.

Since the line has been in place for 192 days, a breakdown below it could trigger a price collapse. Still, the daily time frame is not enough to determine if the bounce will continue or if instead the crash will occur. Besides the fact that the triangle is considered a neutral pattern, the daily RSI it is also neutral as it is rising but still below 50.

If the bounce continues, the XRP price could reach the $0.385 area. If a crash occurs, the most likely future price projection would be a drop below $0.30.

XRP/USDT daily chart. Fountain: TradingView

Short-term rally to $0.385

The six hour chart shows that the XRP price broke out of the $0.355 resistance area over the past 24 hours. The breakout was preceded by a bullish divergence on the RSI (green line).

Furthermore, the digital asset is following a short-term resistance line, which is currently sitting at $0.375. This increases the importance of the $0.385 area due to this confluence of resistance levels.

As a result, although a move higher towards this area is expected, the reaction once the price gets there will likely determine the direction of the future trend.

Short-term XRP resistance
XRP/USDT six-hour chart. Fountain: TradingView

To conclude, the main XRP readings are neutral and do not provide decisive direction to the future trend. The reaction once the price reaches the $0.385 area will be crucial in determining whether the move is bullish or bearish.

For the latest BeInCrypto crypto market analysis, Click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but will not be responsible for missing or inaccurate information. You agree and understand that you must use any part of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.