Fresh off setting a one-month high, the price of ripple’s native cryptocurrency, XRP, is struggling to cut through resistance offered by a rising channel hurdle.
At press time, the ripple-US dollar (XRP/USD) exchange rate is $0.24, and while that figure is up 4.24 percent on the day and 21.89 percent week-over-week, it seems further gains may be difficult.
Potentially positive news drivers aside, price action analysis suggests XRP is struggling to hold above $0.21 (its September 27 high), meaning downside potential is still in play.
The chart above shows:
- XRP is having a tough time breaching the rising trend line resistance (upward sloping blue lines).
- 5-day moving average and 10-day moving average is sloping upwards.
- The 14-day relative strength index (RSI) is above 50.00 (bullish territory) and pointing upwards.
4-hour chart: Overbought RSI
- XRP is likely to stay on the front foot and could eventually take out the rising channel hurdle. Prices could then proceed to test their August high of $0.2650.
- However, the RSI on the 4-hour chart is overbought (rally overdone). Thus, a minor pullback to $0.2190 cannot be ruled out.
- On a larger scheme of things, only a break below $0.20 would signal bullish-to-bearish change.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple, the developer of the XRP Ledger.
Cords and plugs image via Shutterstock
Products from Amazon.co.uk
Price: Check on Amazon
Price: £7.69Was: £10.99