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XRP Price Rises 40% in One Week, But Can It Recover to $0.50?

Most markets are recovering since the acquisition of a strong shaking over the weekend, in which the price of Bitcoin (BTC) fell $1,400 in minutes, falling below the $11,000 levelliquidating $1 billion in the future along the way.

However, one of the most reliable currencies in recent days is the token XRP with Rippleas it has rallied 40% in the past seven days and over 70% from recent lows towards $0.30, as expected on the previous technical analysis of XRP.

Now that the target price has been reached, let’s look at the charts to see Where is the price of XRP headed.

Daily crypto market performance

Daily performance of the Cryptocurrency market. font: Coin360

XRP slugged over 70% towards critical resistance at $0.30

XRP price made a support/resistance flip at $0.185 on July 19, followed by an apparent advance from the 100-day and 200-day moving averages (MA). This advance resulted in a massive rally towards the $0.30 area, an increase of over 70%.

XRP/USDT 1 day chart

XRP/USDT daily chart. Source: Trade View

According to the graph, it is very likely that XRP will continue in the short term. The $0.30 area is a critical resistance zone, which is unlikely to be broken all at once, especially after the price of XRP has already seen a major rally.

Important levels to watch

Breaking the 100 and 200 day MAs puts XRP/USD in bullish territory and declines should be viewed as buying opportunities.

Moreover, given the huge drop on Saturday, XRP price has already tested the support level at $0.245, although further tests of this level are not out of the question. Key support zones, and possible dips to buy, are found at $0.20750-0.21250 and $0.24250-0.24750.

The next resistance zones after this critical $0.30 area are between $0.46-0.50. In the same way, the next rally for XRP is likely to stop at these levels.

XRP/BTC breaks critical resistance

XRP/BTC 1 day chart

XRP/BTC daily chart. Source: Trade View

The XRP / BTC pair has been trending down for more than two years and even missed the crucial support level at 0.00002400.

However, in the recent price action, XRP broke above this level and approached the next resistance zone at 0.00002800 sats. Therefore, the same conclusion can be drawn from the BTC pair as from the USDT pair. In other words, a bullish continuation is unlikely to be expected for the BTC pair as well. Rejection is very likely because price has reached this resistance level on a vertical line.

The critical levels to hold are the 100-day and 200-day MAs, which XRP has broken above and must now support. This is also in line with the critical support level at 0.00002400.

What are the scenarios for XRP/BTC?

The most likely scenario is a correction towards the 0.00002400 area.

XRP/BTC 1 day chart

XRP/BTC daily chart. Source: Trade View

Such a correction would coincide with a general correction in the cryptocurrency markets and would be classified as healthy.

If the price of XRP rejects the resistance zone between 0.00002800-0.00002900 sats, the basic level to watch is the area 0.00002200-0.00002400 sats. During the first half of 2020 and throughout 2019, the price of XRP found support at the level of 0.00002400 sats. Claiming and confirming that level of support would guarantee that the uptrend would continue.

The next step is likely to take XRP price to 0.00003700 sats. The second scenario is an immediate break through the 0.00002800 resistance zone.

XRP/BTC 1 day chart

XRP/BTC daily chart. Source: Trade View

Such a scenario is less likely to occur as the price of XRP approached all these resistances at the same time, which usually ends with a major rejection.

However, if a breakout occurs, a support/resistance flip of the 0.00003700 level would likely push the XRP price towards the next resistance zone at 0.00003700.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investment and trading moves involve risk. You should do your own research before making a decision.

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