xrp cryptocurrency price

XRP soars above $0.53, defies risk of a 45% correction for now

Ripple flows out of exchanges as Bitcoin and Ethereum inflow spikes
Written by publisher team

  • XRP price is grappling with the $0.50 resistance level, which coincides with the confluence of several technical barriers.
  • Rejection at this level increases the odds of a 45% drop in Ripple’s market capitalization.
  • A possible correction could be shortened by the four-hour EMA50 around $0.42.

It is simple to say that the price of XRP was affected by the SEC’s fee on Ripple. In fact, the remittance token suffered from a lack of liquidity as many crypto exchanges stopped it for trading. While some market participants did everything in their power to push it higher, it appears that this altcoin is poised for another drop.

to update: Ripple’s XRP defies gravity as of Wednesday – trading above $0.53, up over 11%. The token is experiencing high volatility as it remains in the spotlight for both right and wrong reasons. Looming are regulatory issues around its price as well as some technical aspects of its price. On the other hand, XRP is benefiting from the increased interest in cryptocurrencies arising from Elon Musk’s Bitcoin project. Musk-founded Tesla has announced that it is investing $1.5 billion in a handful of cryptocurrencies and may also accept BTC payments under certain conditions. Ripple’s offering is also promising for transactions, and some investors may try to jump on XRP – seeing it as the next digital currency to gain more massive adoption in the real economy. More: Elrond may provide a buying opportunity.

XRP Might Be Overtaken By Bears Soon

XRP price has developed a bearish flag on the 4 hour chart. Since this is considered a continuation pattern, the rising flag pole indicates that the altcoin could drop by 45%.

However, this bearish scenario is not consistent.

The $0.50 resistance level is crucial in determining the next direction for XRP price. This obstacle consists of the 50% Fibonacci retracement level and the SuperTrend sell signal. Thus, getting over it will not be an easy task.

The rally in selling pressure around this level could be significant enough to push XRP price to $0.42. Here, the four-hour EMA 50 coincides with the 38.2% Fibonacci level, adding an extra layer of support.

But if this level is breached for any reason, the price of XRP may drop to $0.22.

XRP / USDT 4 Hour Chart

Regardless of the bearish outlook, an increase in buying pressure causing the 4-hour candle to close above the upper trendline of the channel at $0.53 could lead XRP price to head to greener pastures. Slicing the resistance would open up the possibility of a 20% rally to $0.60.

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