- XRP price is showing bullish signs as it bounced off a stable support barrier around the $0.38 level.
- This bounce was crucial in keeping Ripple’s bullish parallel channel pattern intact.
- The ‘buy signal’ from the SuperTrend indicator along with the bullish momentum indicates that a 70% rally is possible.
XRP price reached a local high on February 13 at $0.64, followed by a 40% downward correction. In hindsight, this peak coincided with the upper trendline of the ascending parallel channel. Now, the remittance token is preparing for another step as it sees a spike in buying pressure.
XRP Price Looks Higher
The XRP price correction seen on December 29, 2020, January 27, and February 23 formed swing lows. On the other hand, Ripple’s price action on December 25, 2020 and February 13th led to swing highs. Drawing trend lines along pivot points creates an upward parallel channel.
Although XRP did not break out of the channel, the target for such a technical pattern is set by adding the height of the channel to the breakout point. This setup has a bearish slope and tends to break down.
However, as mentioned above, XRP price managed to bounce off the lower trendline of the channel. This bullish momentum indicates that buyers could push XRP by 70% towards the $0.78 level.
This bullish momentum is supported by a buy signal for the SuperTrend indicator, which also played a vital role in the aforementioned rebound.
Investors should note that this increase is not without its hurdles. XRP price rally will face a supply barrier around the $0.57 region, the confluence of the 78.6% Fibonacci retracement level and the middle line of the channel. A decisive daily candle close above this price point would instill confidence in the buyers, and push XRP towards its target at $0.78.
XRP/USDT 1-Day Chart
Contrary to bullish expectations, a lackluster performance by the bulls may lead to a pullback. If this correction results in the daily candle closing below the 50% Fibonacci retracement level at $0.36, it will invalidate the bullish theory and the buy signal of the SuperTrend Indicator.
XRP/USDT 1-Day Chart
In such a case, XRP price could slip past the 38.2% Fib retracement level at $0.30 and reach $0.26.