- The price of XRP recently rebounded from the daily demand area, extending from $0.694 to $0.753.
- The resulting uptrend failed to continue, and returned to the immediate support level to restart another uptrend.
- A breakdown of the $0.694 support level will invalidate Ripple’s bullish theory.
XRP price is hovering around the higher time frame support level for months. The recent retest of this barrier should have triggered an impressive rally restart, but Ripple faces multiple hurdles, leading to a truncated uptrend.
XRP price dreaming of fast movement
XRP price rebounded from the $0.694 daily demand area to $0.753, leading to a 15% rally. However, the rally reversed even before it retested the $0.817 resistance barrier. This rollback has brought the switchback code back to the wing, to retest the aforementioned demand area.
If XRP price manages to launch another bullish trend, there is a good chance that it will be capped by 10% due to the 50-day simple moving average (SMA) at $0.851. Clearing this hurdle will open the way for a 12% rally that will cause Ripple to reconsider the 200-day SMA at $0.953.
This increase would constitute a 22% rise and have a lower probability of a breakout compared to a 10% rally to the 50 day simple moving average.
Any move beyond the 200-day SMA appears unlikely due to the 100-day SMA at $0.984.
XRP/USDT 1-Day Chart
On the other hand, the daily demand area from $0.698 to $0.753 has been tested several times over the past five months. Thus, the chances of the breakdown of this barrier are more.
If XRP price produces a daily candlestick close below $0.698, it will create a lower bottom, invalidating the bullish theory. This development may open the way for the bears on Ripple to push the altcoin to $0.604 after a 13% collapse.