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.

XRP/USDT Daily Chart. Source: TradingView

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.

Short-Term XRP breakout SEC
XRP/USD Six-Hour Chart. Source: TradingView

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.

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