The cryptocurrency market has been experiencing a slowdown in the past two days. At the time of writing, Bitcoin is trading at $34,301, marking a 0.67% decrease in the last 24 hours. This development has also resulted in a weakness in the altcoin market. So, how can we interpret the charts for Ripple, one of the most prominent projects in recent days? Let’s take a closer look.
Daily Ripple Chart Analysis
Due to the volatility caused by a court decision in July, we cannot talk about a healthy formation structure in the daily Ripple chart. However, XRP has recently shown notable upward momentum after crossing above the EMA 200 average (red line). Breaking the descending trend that has been ongoing since August will make things easier for XRP.
The most important support levels to watch in the daily Ripple chart are 0.5775, 0.5612, and 0.5397 dollars, respectively. Particularly, if the daily bar closes below the 0.5397 dollar level, which is close to the EMA 200 level, it will slow down the recent upward momentum and cause the gains of the past few days to disappear.
The most important resistance levels to follow in the daily Ripple chart are 0.6101, 0.6366, and 0.6634 dollars, respectively. Especially, the 0.6101 dollar level, which was rejected in the latest bar formation, is the most crucial resistance level in the short term. If the daily bar closes above this level, it will accelerate the upward momentum.
Two-Hour Ripple Chart Analysis
With the recent surge, a rising channel formation has appeared in the two-hour Ripple chart. However, the bear trap on October 25 shows that the formation structure is not entirely reliable. There is a possibility of a negative scenario for XRP in the short term, considering the recent rejection from the resistance line in the latest bar movements.
The important support levels to watch in the two-hour XRP chart are 0.5816, 0.5710, and 0.5619 dollars, respectively. Particularly, the 0.5816 dollar level, which is currently active, holds great significance in the short term. Additionally, a bar closing below this level would increase the likelihood of touching the formation support.
The important resistance levels to follow in the two-hour XRP chart are 0.5959, 0.6039, and 0.6141 dollars, respectively. Especially, a bar closing above the 0.6141 dollar level, which caused a significant drop after today’s touch, will enable XRP to gain momentum.
