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XRP/USD Bullish Above 0.2700
- Ripple (XRP/USD) strengthening the bullish case above 0.2700.
- Resistances ahead and speculation on whether cycle is completed.
XRP has been following the same path as other cryptocurrencies since the start of the year. It is now consolidating its price action above the 0.2750 handle. It remains positive during the first week of February.
Impetus was gained near the 200 SMA at the H4 chart, where the demand for Ripple surged and helped to strengthen the bullish bias in the short term, highlighting an interesting pattern.
From the lows of December 2019, the cryptocurrency has been riding a cycle that ended in the first degree in the highs of January. Such a move gave a boost to the bulls’ force that has been dominating the crypto sphere.
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Key resistances ahead
Now, XRP/USD is challenging a critical resistance around 0.2780, which is the last hurdle ahead of another key barrier.
That level lies at 0.2913, where the 100% Fibonacci extension level is situated. Once the pair manages to test that area, it should complete the first leg of the aforementioned cycle. This is being favored by the momentum gathered from the lows of the second half of January.
Once Ripple manages to break above such a region, eyes will be on the 0.3024 level. This level is a key barrier to overcome for the buyers. If it does break out above that zone, the next hurdle to the upside at 0.3218 could be challenged.
Cycle completed?
However, if XRP manages a pullback at the 100% Fibo extension level, the corrective phase should extend towards the 50 SMA in the first degree. Below that indicator, the next tough nut to crack to the downside will be the 0.2323 level also makes a confluence with the 200 SMA. If it gives up in favor of the bears, another decline is expected to take place towards 0.2059. Technical oscillators are at higher extreme levels, signaling further pullbacks that could take place in the near-term.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.