Is Ripple’s Rally Over? XRP Price Runs Into Roadblock

Fresh off setting a one-month high, the price of ripple’s native cryptocurrency, XRP, is struggling to cut through resistance offered by a rising channel hurdle.

At press time, the ripple-US dollar (XRP/USD) exchange rate is $0.24, and while that figure is up 4.24 percent on the day and 21.89 percent week-over-week, it seems further gains may be difficult.

Potentially positive news drivers aside, price action analysis suggests XRP is struggling to hold above $0.21 (its September 27 high), meaning downside potential is still in play.

Daily chart

The chart above shows:

  • XRP is having a tough time breaching the rising trend line resistance (upward sloping blue lines).
  • 5-day moving average and 10-day moving average is sloping upwards.
  • The 14-day relative strength index (RSI) is above 50.00 (bullish territory) and pointing upwards.

4-hour chart: Overbought RSI

View

  • XRP is likely to stay on the front foot and could eventually take out the rising channel hurdle. Prices could then proceed to test their August high of $0.2650.
  • However, the RSI on the 4-hour chart is overbought (rally overdone). Thus, a minor pullback to $0.2190 cannot be ruled out.
  • On a larger scheme of things, only a break below $0.20 would signal bullish-to-bearish change.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple, the developer of the XRP Ledger.

Image via Shutterstock

Source: Coindesk

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