XRP Forms Strong Support Base Above $1.6, Could Shoot Higher

XRP forms strong support base above $1.6 and started increasing against the US dollar with the price now being able to start a strong increase again above the $1.50 resistance zone as we can see more in our latest Ripple news.

Ripple is showing positive signs above the $1.20 level against the US dollar and the price is now trading well above the $1.350 and the 100 simple moving average. There’s also a major contracting triangle that is forming near the $1.50 on the 4-hour chart of the pair that could start a fresh rally if it clears the $1.500 resistance zone.

Over the past week, ripple’s XRP started a new downside correction from above $1.65 and the coin extended its drop below the key $1.50 support similarly to ETH and BTC. It then opened the doors for a fast spike below the $1.20 support but the bulls were quite active above the $1.15 level. The new low was formed near $1.162 and the price continued rising as it broke the $1.25 resistance level.

XRP forms a strong support base after it broke the 23.6% fib retracement level from the downward move at $1.97 high to $1.162 low. It is now trading well above the $1.300 and the 100 simple moving average with the major contracting triangle forming with the resistance at $1.50 on the 4-hour charts of the pair. The triangle resistance is near $1.50 and the next hurdle could be set at $1.56 which is near the 50% retracement level from the downward movement of the $1.97 high to the $1.162 low.

Breaking above the triangle resistance and the $1.56 could set the pace for a new surge and in this case, the price could rally above the $1.65 and the $1.70 levels. If XRP fails to clear the $1.500 resistance or the $1.560 it could correct lower with initial support on the downside nearing the $1.300 level.

The major support is also close to the $1.28 level and the triangle lower trend line. More losses could call for a drop to $1.15 support in the upcoming sessions. The 4-hour MACD for the pair is now gaining pace in the bullish zone while the 4-hour RSI is above the 50 levels.