XRP holders are still battling for the $ 0.30 area, while the majority of cryptocurrency markets are euphoric with Bitcoin (BTC) prices above $ 40,000.
BTC price is currently over 100% higher than its previous all-time high in 2017, while XRP price is still down more than 90% from its all-time high in 2017. An SEC lawsuit against Ripple is certainly not bullish, and it is.The main reason for this general weakness is that it delisted some exchanges.
However, the chart could offer a potential uptrend in the short term if XRP price breaks through several crucial resistance levels.
The resistance at $ 0.32-0.345 needs to break for more upside potential
XRP / USD 3-day chart. Source: TradingView
The XRP chart shows a very strange price pattern as the XRP price has wonderfully flipped the $ 0.21 area for support in 2020. This support / resistance flip caused a breakout above the significant resistance zone at $ 0.32-0.35. This breakout caused a surge toward the region of $ 0.80, one of the most significant spikes in XRP in recent years.
The fundamentals came to fruition, however, when the SEC revealed a lawsuit against Ripple that caused the price of XRP to drop in the range.
Now the structure itself has been destroyed and looks quite strange. Regardless of this bizarre step, crucial and beneficial levels can still be determined from here.
The critical level for the bulls is the $ 0.21-0.23 low, which has provided renewed support in the past few weeks.
Yes, the candles fell below $ 0.21 to $ 0.23. However, the candle closings were on top, indicating that support for XRP has been found.
In the lower time periods, the $ 0.295 area is critical
XRP / USD 1 hour chart. Source: TradingView
Traders often zoom in on shorter periods of time to identify critical levels. Based on the higher timeframes, critical levels are defined as support and resistance zones at $ 0.21-0.23 and $ 0.32-0.35, respectively.
However, the 1 hour chart shows a different critical level. This level is the zone from $ 0.28 to $ 0.295, marked in gray on the chart.
As long as this is supported, multiple resistance tests can be performed. The more often a resistance is tested, the weaker it becomes. Hence, a breakout towards USD 0.50 is at play.
On the other hand, if support for $ 0.28-0.295 is lost, the next area of support is support for a higher timeframe between $ 0.21-0.23. This area is also low in 2019 and 2020 and could usher in a longer accumulation period for XRP.
XRP / BTC pair is overloaded
XRP / BTC 3-day chart. Source: TradingView
The XRP / BTC pair looks gross as it has hit new lows since peaking in January 2018.
Therefore there are no arguments for a position in XRP. However, there are some arguments for looking for a possible reversal. One of them is the sharp increase in XRP trading volume recently, which indicates that traders are accumulating the cryptocurrency.
This could turn back into a bull cycle if XR price tips previous support levels at 0.00001550, 0.00002050. 0.00002350 sats for support.
The final argument is to look out for a possible bullish divergence in the daily, three-day, or weekly timeframe. Once that happens, a reversal for XRP could be near. Until then, however, it is still in a very precarious position with a downward trend.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.
