July 13, 2024

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XRP Price Hits Target Of $0.5, Can It Break This Key Resistance?

2 min read
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The XRP price has been swimming against the tide and continues to show strength against larger cryptocurrencies, such as Bitcoin and Ethereum. A potential settlement between the U.S. Securities and Exchange Commission (SEC) and Ripple might continue to prompt this cryptocurrency to the upside.

At the time of writing, the XRP price trades at $0.52 with sideways movement in the last 24 hours and a 17% profit in the last week. As NewsBTC reported last week, the cryptocurrency broke out of a major downside trendline hinting at future appreciation with a target set at its current levels.

XRP Chills Before Taking Off? Consolidation Might Be Key

In late September, the XRP price was able to reach the middle area of its current levels at $0.55 before beginning a descend to a monthly low at $0.44. As seen in the chart below, as news about a potential settlement in the case against Ripple became public, the cryptocurrency changed the trend breaking above the following pattern.

Before breaking out of that trendline, XRP moved sideways for a while possibly gaining momentum for its upside move. At the time of writing, as BTC and other larger cryptocurrencies lose bullish momentum, the XRP might be on a similar path of consolidation before breaking out.

As pointed out by a pseudonym trader, the $0.50 area is a major resistance for this cryptocurrency as it is a multi-month high that turned into a headwind for any potential rally. Over the weekend, the trader stated the following on XRP and its potential to continue its bullish momentum:

$XRP Still really liking the strength shown by XRP. Watching this LTF triangle right now. Break that and we can attempt the HTF 0.5-0.51 resistance. So be a bit cautious as we’ve not broken out yet. If it does that, we can expect higher.

Macro Factors Might Stand In The Way Of XRP

In the coming days, the crypto market is poised to be impacted by a spike in volatility as the U.S. Federal Reserve (Fed) could reiterate its aggressive monetary policy. Thus, negatively impacting XRP and other digital assets.

If bulls are unable to push beyond the XRP price current levels, then the cryptocurrency might be bound to a re-test of its previous support zone at around $0.49. Data from Material Indicators shows that XRP has a significant ask (sell liquidity) just above its current levels.

In addition, XRP’s price action is currently being sold by most investors with the exception of investors with bid orders of over $100,000. These investor class (whale on the chart below) exercise a lot of influence on the price action and might continue to allow XRP to take a second push higher if they continue to support it by countering selling orders.