After being forced to abandon its bullish case aiming for a breakout to $1 at $0.54, XRP price is struggling to hold support at $0.5. The sell-off in August in addition to trimming gains from $0.93 to the pre-Ripple vs. SEC ruling levels, has deprived the cross-border money remittance token the momentum to sustain a rebound.
XRP price currently wobbles in a narrow range, with support at $0.5 and resistance at $0.55.
What Does XRP Price Need To Climb To $1
First, bulls must ignore the calls for further declines to $0.4 and $0.3, and seek fresh exposure to XRP longs. That way, they can begin to build momentum to support a rebound off support at $0.5.
Failure to rally behind XRP implies that sellers will keep pushing the price lower and further delay the run-up into the next bull market.
The path with the least resistance is to the downside, at least for now, but traders can be on the lookout for a buy signal from the Moving Average Convergence Divergence (MACD) indicator as long the support at $0.5 holds.
A buy signal from the momentum indicator validates with the blue MACD line crossing above the red signal line. Investors will also notice the histograms flipping green above the mean line and the indicator moving up.
A key breakout likely to mark the beginning of the move to $0.85 and later to $1 would start with XRP climbing above the 50-day Exponential Moving Average (EMA) and consequently the descending trendline.
Why Moving To $1 May Be A Daunting Task
XRP price holds support but is trading below the monthly point of control (mPOC) at $0.5076 as well as the monthly open (mOpen) at $0.5114.
Now that XRP has started a new bullish candle, lifting above these two key levels will serve as confirmation for the breakout. Notably, with the Relative Strength Index (RSI) almost at the oversold region, it would be premature to rule out a rebound targeting movement above $0.55 (previous hurdle).
If support at $0.5 weakens, investors should be better prepared for losses to $0.48 and $0.4, respectively. Remember, the hype surrounding ETFs has faded following the SEC’s decision to delay the approvals. On top of this, a hike in interest rates means that investors may seek relief in less volatile traditional assets.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.