Ripple’s XRP token fell almost 55% in a short period of time, after gaining more than 200% in value recently. So XRP has had a crazy journey in the last 10 days.
Support of $ 0.35 prevented XRP from falling further after a 55% drop, which was met by a 3-month downtrend line (black). Keeping the price above the downtrend for the first time in three months can be viewed as a breakout and retest, which is considered a bullish indicator.
After three days of consolidation, XRP price managed to break $ 0.40 above the resistance. Ripple is in a tight consolidation range between $ 0.42 and $ 0.47 since the 40% recovery from lows of $ 0.35. This consolidation can be seen as a bullish flag.
A break above $ 0.47 could send XRP up 13% to critical resistance of $ 0.50. Conversely, a break below $ 0.42 could trigger a 17% drop to the MA 100 with support at $ 0.35. Support for $ 0.35 is currently standing near the quarterly downtrend (black).
Besides that, the MACD has been tightening for more than a day. This is a sign that a big move is coming. This indicator can be used to evaluate bullish and bearish momentum. As a signal, it can be bought (buy signal) when the MACD line (blue) goes above the orange line. On the other hand, it can be sold (sell signal) when the MACD (blue) drops below the orange line.
The significant resistance of $ 0.50 can be seen as an indicator of a potential jump to $ 1.00. Looking at a daily chart, we can conclude that the rise to $ 0.75 is a “fake out” since the candle doesn’t close above the $ 0.75 resistance. So this situation occurs when prices open just beyond the resistance or support level, but at the end of the day, it moves in the opposite direction from the direction it broke. It is worth noting that $ 0.75 is important for higher levels.
Looking at the basics, we could consider two events this week as bullish signals. First of all, XRPUSD LONGS on Bitfinex reached an all-time high within hours as the price was close to $ 0.36. This is a measure of the amount of long positions open at a given time on the crypto currency exchange Bitfinex. In addition, XRP search terms have surpassed all-time highs in Google trends. There has not been such a large search and price difference in XRP history. In all major digital assets, search terms correlate very closely with price. This can also be viewed as a bullish indicator.