- $0.6 offers a strong horizontal resistance
- The bias remains bullish while the market holds above the 2023 lows
- A daily close above $0.6 should trigger more upside
It must have been a frustrating second half of the last year for cryptocurrency investors. As the dollar began to weaken, major stock market indices bounced.
But the dollar’s weakness was not seen in the cryptocurrency market until the very last days of the year. Moreover, the divergence continued from last October, when the stock market bottomed, until the last trading days of the year.
Only in 2023 things changed. Leading cryptocurrencies rallied, led by Bitcoin.
Some bounced stronger than others. In the case of XRP/USD, it met horizontal resistance at $0.6, a level that provided support in 2021.
A daily close above $0.6 would be bullish for XRP/USD
After trading above $1.8 in 2021, when the entire cryptocurrency market rallied, Ripple gave up a big chunk of its gains. On the way down, the market met support at $0.6 for over a year.
Eventually, the support gave way as the bears were in control.
But now, the same area that acted as support acts as resistance. In technical terms, this is called the interchangeability principle (i.e., support becomes resistance and vice versa).
If the bottom carved in the late days of 2023 is here to stay, then the focus is on the $0.6 area. A daily close above would be bullish, and the next immediate target would be $0.8. However, only a break above parity would shift the bias from bearish to bullish.
All in all, XRP/USD looks constructive here. As long as the lows hold, the chances are that the market is only building energy for another attempt at the $0.6 level.
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The XRP/USD market has failed to break through the horizontal resistance this week, despite yet another attempt to break the $0.32 mark.
This week, XRP/USD has seen a bullish run, attempting a rally to the upside. The positive sentiment was supported by increasing buying volumes, rising above levels not seen since late March.
However, the market failed at the horizontal resistance of around $0.32. This horizontal resistance, combined with the heavy selling at the $0.32 level, created an obstacle that was too strong for the XRP/USD market to overcome, sending the price back down.
Despite the unsuccessful attempt to break through resistance this time, the underlying bias still remains bullish. This is indicated by the increased buying volume and the low levels of buying pressure at the resistance levels.
Recent news that Ripple and its ODL service have seen a substantial growth is likely to support the bullish sentiment in the market. Specifically, the volume of XRP moved over the last few months has grown by 9 times compared to the previous quarter. This news has been seen as positive for the development of the XRP/USD market.
Ultimately, analysts remain optimistic on the short-term outlook and believe that the bullish bias stands a good chance of continuing in the near future.
Overall, it appears that XRP/USD has failed to break above the horizontal resistance this week, but it appears that the market could make another attempt in the near future. As such, many remain optimistic on the short-term outlook for the XRP/USD market.
