XRP Targets $0.55 as Key Obstacle to Further Rally (Ripple Price Analysis)

XRP Targets $0.55 as Key Obstacle to Further Rally (Ripple Price Analysis)

After an impulsive bullish rally, Ripple has broken through several resistance levels such as the 50-day moving average, the multi-month triangle pattern and its previous major swing highs. However, the price now faces a significant crucial resistance zone at $0.55.

Technical analysis

From Shayan

The daily chart

After an impulsive increase, the price has reached many critical resistance levels, creating bullish sentiment for the cryptocurrency. However, after reaching a significant barrier around $0.55, the rally temporarily stalled and the price declined somewhat.

Although the slight rejection could be viewed as a short-term correction before the next rise above the mentioned resistance area, $0.42 acts as a critical support in the event of a sudden decline.

This is particularly relevant as the 50-day moving average is currently around $0.42, making it a strong support level.

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The 4 hour chart

Typically, a healthy bull rally consists of an impulsive phase characterized by a significant increase, followed by a corrective phase during which the price forms corrective patterns.

As shown in the chart below, Ripple experienced an impulsive rally, broke through the descending price channel and then entered a short-term correction phase, forming a symmetrical triangle pattern.

After all this, the cryptocurrency continued its upward trend by breaking above the upper boundary of the triangle with a strong move. However, as the price reached the critical resistance zone of $0.55, the rally paused and Ripple entered another correction stage, forming a descending flag pattern.

To summarize, if the price breaks above the flag pattern and claims the $0.55 resistance level, a comprehensive rally can be triggered. However, the $0.48 minor zone will serve as Ripple’s primary support if rejection occurs.

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