If the bullish momentum increases, XRP/USD could test resistance at $1.28 and eventually head towards $1.42.
XRP price is fighting for a rise near a critical resistance level, with its value just in the green at the time of writing. XRP/USD is trading near $1.24, an area that is likely to see further rejection or a breakout to recent highs.
A look at the market shows that the two major crypto-currencies, Bitcoin and Ethereum, have also been facing some selling pressure after breaking through $50,000 and $3,300 respectively. If the general sentiment pushes crypto-currencies into the red, XRP could see losses below $1.20.
However, as the bulls seem to retain considerable control, a decent move in the opposite direction would invite fresh bids and perhaps trigger a new rally towards $1.42 or even $1.66.
XRP Price Outlook
The XRP price outlook suggests that a period of relative calm could allow for further consolidation in the $1.20 to $1.28 range. The Bollinger Bands indicator is narrowing to highlight the decrease in volatility, which sets XRP/USD up for a possible retest of the lower band as the upside struggles to break through the middle curve barrier.
The price of the crypto-currency on the 4-hour chart also shows XRP bulls struggling near the 0.5 Fibonacci retracement level of the macro move from $1.97 to $0.50. The hurdle is presented at the $1.24 price level, which has added to the possibility of further downside moves.
XRP/USD 4-hour chart. Source: TradingView
The bulls can prevent another decline if they keep the price of XRP above the ascending trend line of the highlighted triangle pattern. This line has kept Ripple’s bullish outlook intact since the first week of August and is currently looking to do the same.
The possibility of a bounce is present as the 4-hour RSI indicator is above 50, suggesting that the buyers have a slight advantage.
If the bulls record another trendline bounce, consolidation above the Fib 0.5 level ($1.24) could allow the upside to break through horizontal resistance at $1.28. This move would open up XRP/USD for legitimate moves towards the Fib 0.618 ($1.42) level and then the Fib 0.786 ($1.66) level.
On the downside, exhaustion of the bulls could see XRP price move below the aforementioned trendline and Bollinger Bands support line. The bands currently provide an anchor point around $1.20, but a clear break in un increased selling pressure could push XRP/USD towards the horizontal support level at $1.09. Beyond that, buyers could lean on the demand zone at $0.85 – the Fib level of 0.236.