XRP price has been hovering around key high timeframe support for months. The recent retest of this barrier should have restarted an impressive rally, but the altcoin faced several hurdles, resulting in a pause in the uptrend.
XRP exited the daily demand zone from $0.694 to $0.753, resulting in a 15% gain. However, this rally reversed even before retesting the $0.817 resistance. The drop pushed the token to retest the aforementioned demand zone.
If XRP price tries to start another uptrend, it will most likely be capped at 10% due to the 50-day SMA at $0.851. Clearing this hurdle will open a 12% bullish path that will take XRP to the 200-day SMA at $0.953.
Once there, it would register a 22% return, but less likely than a 10% rally towards the 50-day SMA because before it reaches the 200-day SMA, it must make the 100-day -Breaking SMA (0.984) dollars. .
XRP/USDT 1-day chart. Source: TradingView
On the other hand, the daily demand zone, which ranges from $0.698 to $0.753, has been tested multiple times over the past five months. Therefore, the chance of breaking through this barrier is greater.
If XRP price closes a daily bar below $0.698, it will record a lower low, debunking the bullish thesis. This move could pave the way for bears to sink the price down 13% to $0.604.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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