Since breaking resistance at its falling trendline (from connecting the highs of April 30 and June 2), ripple price has been able to sustain its bullish momentum. XRPUSD enjoyed a 2.12% gain in yesterday’s trading. As of this writing, the cryptocurrency is up at 0.2033 from where it bottomed on July 16 at $0.1880.
When you enroll in our free forex trading course, you will learn that a break of a trendline resistance is often seen as a bullish indicator. This has further been validated by reversal candlesticks which formed around the 100 SMA and the 50% Fib level (when drawing the Fibonacci retracement tool from the low of June 27 to the high of July 9). It could imply that buyers are dominating trading and that ripple price may extend its gains. Should this assumption prove to be correct, XRPUSD could soon retest its April 30 highs at $0.2361.
On the other hand, it is worth pointing out that ripple price is still trading below the 200 SMA. In the past, the cryptocurrency faced resistance at the indicator. If XRPUSD is unable to close above the 200 SMA at $0.2992, we could soon see the cryptocurrency fall to $0.1740 where it may retest its July 3 lows.