Ripple (XRP) recorded the biggest weekly gains among the top ten cryptominoes last week. After climbing to a high of $0.47 on Nov. 21, the panic selling seemed to attack with the next candle hitting $0.496 and $0.40 before closing around $0.45 yesterday.
Overall, at the time of writing, the XRP is trading above $0.46 and is over 70% in the last seven days. The positive side means the XRP/USD pair is trading at the price levels last seen around June 2019.
Although the bullish trend has cooled down somewhat, the short-term picture for the XRP/USD currency pair suggests that bulls may still go up. The scenario will likely develop if bulls continue to stay above $0.45 in the next few sessions. A repetition of the strong bullish momentum seen last week may offer buyers an opportunity to press for highs close to $0.50.
Currently the XRP/USD pair is trading above the 78.6% Fibonacci retracement level ($0.45) from the $0.49 swing high to $0.39 minimum. If the bulls keep the Ripple above this area of resistance transformed into support, the buffer it provides will help buyers create an attack at the psychological level of $0.50.
If this fails, bears may first push prices to Sunday’s peak around $0.43 before attempting further damage to $0.40. Support at $0.43 is just above the 61.8% Fibonacci retracement level while the latter is close to the 38.2% Fibonacci retracement level from the $0.49 high to $0.39 low swing.
The 4-hour chart shows that the bulls remain strong above $0.40, with the RSI remaining strong above the 70 line. The bulls have the advantage as long as they hold the price above $0.45.
However, with the bears making it difficult to break the resistance around $0.47, a new test of the $0.49 level may be a bit challenging.
This prospect will likely push the XRP/USD pair into side trading, especially as traders may look to make profits on every opportunity on the upside. In that case, the short-term framework could include correcting the XRP to 20-SMA ($0.40) and then 50-SMA ($0.33).
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