This trading week was tough. In addition to the price explosions of Gamestop and Co. on the classic market, there are also exceptionally strong price movements in some crypto currencies. In particular, the Dogecoin (DOGE) and the crypto veteran Ripple (XRP) are clearly shooting north.
While the key currency Bitcoin (BTC) is hovering around 34,000 USD, many Altcoins show considerable price gains. The dog among the crypto currencies Dogecoin (Doge) can, according to a tweet from Teslach boss Elon Musk, gain almost 400 percent and at the end of the week it had a price increase of 352 percentage points. Ripple (XRP) is also showing above-average strength ahead of the SEC hearing on February 22nd, jumping more than 110 percent north in the last 48 hours. In addition, this week the interest in the DeFi sector continues to persist and is propelling the entire sector to new all-time highs.
Price analysis based on the value pair XRP / USD on Bitfine x
People believed dead live longer. At least that currently seems to be the case. Although American investors can no longer trade Ripple themselves because of the filing of a lawsuit by the US Securities and Exchange Commission, which classifies XRP as a security, Ripple’s price has risen sharply in recent days. At the time of this analysis, XRP is trading at USD 0.605, not only breaking the downtrend, but also currently overcoming the important resistance at USD 0.567. Although large crypto exchanges like Coinbase still do not allow trading with XRP,there are enough investors worldwide who are betting on a further price increase. Short-term investors in particular seem to be following the call from Telegram groups and are speculating on a price squeeze at Ripple this Monday. Investors should be aware of this uncertain situation and if they still want to invest, adjust the position size to the current volatility.
Bullish variant (Ripple)
Although the XRP coursehas already skyrocketed by 160 percent in a weekly comparison, Ripple’s price is currently bullish. A first price target on the upside is the area around USD 0.705, which was briefly overcome in the last few minutes of trading. If this resistance level is broken sustainably, the high of November 24th at USD 0.781 should be considered as a target. If this price level is also clearly broken through, the path would be immediately free to USD 0.969. A strong horizontal resistance line from 2018 runs here. If the XRP price also overcomes this resist by the end of the day, the 138 Fibonacci extension of the current price movement should be started. If there is no clear profit-taking in this chart area and the price continues to rise, the next target in the area of the 161 Fibonacci extension activates at 1.157 USD. A brief overshoot to the strong horizontal resistance at USD 1.204 is also conceivable.
If interest, also fueled by the current hype about Ripple in social media, continues north, a march to the 200 Fibonacci extension at USD 1.391 could take place. Another important horizontal price cap from January 2018 runs just above this projected resistance. If the bulls actually manage to push the price above this price mark, investors will focus on the next relevant price target of USD 1.599. In this area at the latest, it is advisable to realize at least partial profits. If, contrary to expectations, XRP also dynamically overcomes this price mark, the medium-term maximum price target can be found in the range between USD 1.768 (261 Fibonacci extension) and USD 1.785. For the sake of completeness, note the strong resistance at USD 2.093.
Bearishe Variante (Ripple)
If, on the other hand, the XRP price rebounds dynamically in the area of USD 0.705, but no later than the high at USD 0.781, a consolidation up to the support at USD 0.656 is initially likely. If the price subsequently falls below this price mark, a new test of USD 0.599 can be expected. If the bears manage to dynamically undercut this support, a renewed consistency test of the support area between USD 0.567 and USD 0.547 should take place. This is where the golden pocket runs. This is what the technical jargon calls the area between 61 and 65 Fibonacci retracement. If this price range does not hold, Ripple should continue to give up and test the support zone from the two horizontal support lines in the area of USD 0.51. Also a timely relapse to today’s low of 0,
If the bulls do not come back at this support either and stabilize the XRP rate sustainably, the breakout level at USD 0.402 should be tested again. If the XRP price subsequently falls back below the red downtrend line, the scenario of a false breakout is likely. And Ripple should then start at least the EMA20 (red) at USD 0.356. Investors should not be surprised if the price falls to the point of cross support from horizontal support and EMA200 (blue). The red upward trend line in the area of USD 0.26 should be mentioned as the maximum bearish price target. This support level also represents the breakout level on Friday, January 29, 2021. As long as the XRP price can stay above the red downward trend line, the bulls are currently in control.
Indicators: RSI and MACD indicators show buy signals
The RSI as well as the MACD indicator show a buy signal on a daily basis. Looking at the weekly chart, both indicators generated a fresh buy signal, which should also have a positive effect on the price development.