Ripple price enjoyed a strong bullish performance in yesterday’s trading. XRPUSD rose to its highest level since April 30 at $0.2294 and scored a 4.24% profit for the day. However, technicals suggest that the cryptocurrency could be vulnerable to weakness after its recent rally.
On the 1-hour time frame, it can be seen that ripple price was unable to close above $0.2280. In fact, XRPUSD has begun to pare some of its gains since getting rejected at that level. By drawing the Fibonacci retracement tool from the low of July 27 to its intraday high, it can be seen that ripple price has recouped some of its gains back to the 38.2% Fib level. If buyers are unable to sustain their momentum from yesterday, XRPUSD could go all the way down to $0.2173 where it could test the rising trendline for support (from connecting the lows of July 20, July 22, July 24, and July 27).
If support at this level does not hold, the next floor for XRPUSD could be at yesterday’s lows at $0.2097.
Alternatively, if buyers are able to sustain their gains, ripple price could soon trade higher. Near-term resistance is at $0.2361 where it peaked in April. A strong bullish close above yesterday’s highs at $0.2294 could mean that there are still enough buyers left in ripple price.