XRP Price Validates 192 Day Support

The Rip­ple (XRP) price has been mov­ing upward since Dec. 19, when it val­i­dat­ed a long-term ascend­ing sup­port line for the sixth time. A pos­i­tive res­o­lu­tion of its SEC case could have a pos­i­tive impact on the price.

XRP is the native token of Rip­ple Labs, cre­at­ed by Jed McCaleb and Chris Larsen. It acts as a pay­ments net­work for glob­al pay­ments, offer­ing near­ly instan­ta­neous trans­ac­tions at neg­li­gi­ble cost. 

Rip­ple Labs has been in a legal bat­tle with the SEC (Secu­ri­ties and Exchange Com­mis­sion) for two years. If the case is resolved in favor of Rip­ple, it could have pos­i­tive ram­i­fi­ca­tions for the XRP price.

XRP Price Bounces at Long-Term Support

The XRP price has increased along­side an ascend­ing sup­port line since June 14. The line caused numer­ous bounces so far, the most recent on Dec. 19 (green icon). Until now, each bounce has led to a sig­nif­i­cant upward move­ment and even cre­at­ed a bull­ish engulf­ing can­dle­stick (high­light­ed) on Nov. 14. 

The line has been in place for 192 days, increas­ing its sig­nif­i­cance. As a result, a break­down below it could lead to a sharp XRP price down­ward movement. 

Tech­ni­cal indi­ca­tors are unde­cid­ed. This is vis­i­ble in the dai­ly RSI, which has begun to increase but is still below 50. More­over, the indi­ca­tor has not gen­er­at­ed any bull­ish divergence. 

If the upward move­ment con­tin­ues, there would be resis­tance at $0.385. On the oth­er hand, a break­down from the line would like­ly take the dig­i­tal asset’s price below $0.30.

Has a Short-Term Rally Begun?

The tech­ni­cal analy­sis from the six-hour time frame is more bull­ish than that from the dai­ly one. The chart shows that the XRP price broke out from a descend­ing resis­tance line after the RSI gen­er­at­ed bull­ish diver­gence (green line). The increase accel­er­at­ed over the past 24 hours. 

The XRP price is fac­ing minor resis­tance at $0.375. If it suc­cess­ful­ly moves above it, an upward move­ment toward $0.385 would be expect­ed. On the oth­er hand, a rejec­tion from the $0.357 area would like­ly lead to a re-test of the long-term ascend­ing sup­port line. 

Since lines get weak­er each time they are touched, this could cause a breakdown.

To con­clude, the direc­tion of the XRP price trend is unclear. How­ev­er, an ini­tial relief ral­ly toward $0.385 is like­ly. The reac­tion once the price gets there will like­ly deter­mine the future movement.

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.