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.
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
- 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.
Cords and plugs image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at [email protected].
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.