XRP Rallies 10% After Hitting the $0.7 Support But is the Breakout Imminent?


Key Support levels: $0.70

Key Resistance level: $0.85

The ABC correction appears to be completed after XRP successfully tested the $0.70 support level earlier this week. Since then, the price has moved higher and is approaching the resistance at $0.85. XRP may retest the key support again before a sustained breakout can take place.

At the time of this post, the current movement in price can be interpreted as a relief rally after a sharp correction since that was taking place since November.

XRPUSDT_2022-01-12_15-15-22
Chart by TradingView

Technical Indicators

Trading Volume: The volume on this move higher was good. However, it does appear to fade as price increases, making a rejection at the key resistance likely.

RSI: The daily RSI is moving higher in line with price and has also made a higher low. This is bullish in the long term.

MACD: The daily MACD remains bearish, but the moving averages and histogram are quickly curving back up. If XRP can sustain the rally, then MACD may turn bullish in the next few days.

XRPUSDT_2022-01-12_15-15-55
Chart by TradingView

Bias

The current XRP bias is neutral. Despite the relief rally, the cryptocurrency seems more likely to consolidate between the key levels further before a clean breakout can take place.

Short-Term Prediction for XRP Price

If the rally is sustained, then XRP may test the key resistance at $0.85. However, it is too early to expect a breakout, and it may continue to consolidate under the resistance until sufficient momentum is gathered to break through higher.

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Cryptocurrency charts by TradingView.



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