Key Takeaways:
XRP’s price is currently consolidating above the support zone at $0.5080.
On the daily chart, a significant rising channel is forming with support at $0.5300.
To gain bullish momentum, the price needs to break through the resistance at $0.5600.
XRP Price Forecast
The XRP price is currently stuck within a narrow range above $0.500. In order to see a sustained increase, the price must establish itself above the 50-day simple moving average (blue line).
XRP Price Faces Important Obstacles
Following a strong rejection near the $0.6660 zone, the XRP price experienced a bearish reaction. It dipped below the support levels at $0.6250 and $0.600. However, buyers were active above the $0.500 support level.
A low was formed at $0.5086, and since then the price has entered a consolidation phase, while Bitcoin and Ethereum saw bullish movements. Currently, the price is consolidating near the 23.6% Fibonacci retracement level of the downward movement from the swing high at $0.6660 to the low at $0.5086.
XRP Price Daily Chart | Source: TradingView.com
The XRP price appears to be trading within a narrow range and is encountering strong resistance near the 50-day simple moving average (blue line) and $0.5600. To see a sustained increase, the price must establish itself above the resistance zone at $0.5600.
The next significant barrier is located near the $0.5880 level. The first major resistance could be at $0.6060, which represents the 61.8% Fibonacci retracement level of the downward movement from the swing high at $0.6660 to the low at $0.5086.
If the price convincingly breaks and closes above the $0.6060 resistance zone, it could move towards the $0.6660 level. Further gains might open the door for a test of $0.6850. The next major pivot zone is at $0.7200, above which the price could surge and test $0.8800.
Possible Downside Movement?
On the other hand, if the XRP price fails to break through the resistance zone at $0.560, it could react with a downside movement. Immediate support is located near the $0.530 level. On the daily chart, a significant rising channel is forming with support at $0.5300.
The first major support level is at $0.5080. A break below this support level could lead to a drop towards the support at $0.4450. The next significant support level is near $0.4320, below which the price could test the support at $0.4020. Further losses might push the price towards the $0.3850 level or even $0.3720.
Overall, the XRP price is currently consolidating above the support levels at $0.5300 and $0.5080. To gain bullish momentum, the price needs to establish itself above the resistance level at $0.560.