In the cryptocurrency market, technical analysis is a crucial indicator that particularly derivatives traders need to monitor continuously. What does the technical analysis indicate for Ripple, which was trading at 0.6013 dollars at the time of writing? We explore this with a detailed chart review and by examining key support and resistance levels.
XRP Chart Analysis
Ripple’s first notable formation on the four-hour chart is a descending channel pattern. Despite breaking the resistance line after the rise on November 26, XRP faced significant selling pressure at this level. Subsequently, XRP’s price continued to lose momentum and closed below the EMA 200 (red line), losing a critical support level.
The most important support levels to follow on the four-hour chart for XRP are 0.5976, 0.5879, and 0.5773 dollars. A closure below the 0.5976 dollar level, which has been playing a significant role for the past week, will likely cause XRP’s price to lose momentum in the short term.
The most important resistance levels to watch on the four-hour chart for XRP are 0.6076, 0.6138, and 0.6251 dollars. Notably, a closure above the 0.6251 dollar level, which intersects with the EMA 200 level, will potentially lead to a breakout from the descending channel formation and allow XRP to trade above the EMA 200 level.
XRP/BTC Chart Analysis
One of the most critical metrics to monitor in the altcoin market is the performance of altcoins against Bitcoin price, which we can assess through Bitcoin pairs. A recent breakout in the XRP/BTC pair could lead to significant losses for Ripple investors. A breakdown of the long-standing support line on the pair followed by a daily bar closure at this level could result in Ripple losing value against Bitcoin.
Important support levels in the XRP/BTC pair are 0.00001573, 0.00001507, and 0.00001450. A bar close below the 0.00001573 level will cause a break of the support line, leading to a loss of momentum for Ripple.
The resistance levels to keep an eye on in the XRP/BTC pair are 0.00001650, 0.00001695, and 0.00001776. Particularly, a closure above the initial level of 0.00001650 will likely enable Ripple to gain value against Bitcoin in the short term.
- Technical analysis is vital for cryptocurrency traders.
- Ripple’s XRP shows a descending channel pattern.
- Key support and resistance levels identified for XRP.