XRP Consolidates Above Yearly Support as Short-Term Bullish Momentum Continues

XRP is consolidating above a long-term horizontal support level and is showing short-term bullish signs.

XRP has been decreasing since reaching an all-time high price of $1.96 on April 14. So far, it has reached a low near $0.60 twice, more specifically on June 22 and Jan 24 (green icons). The ensuing bounce served to validate the $0.60 horizontal area as support. 

Previously, the area had acted as resistance since Oct 2018. Therefore, its reclaim and subsequent validation as support is a very bullish development.

Cryptocurrency trader @Crediblecrypto tweeted a chart of XRP, stating that the price has reached his area of interest, since it bounced at the $0.60 horizontal support level.

XRP consolidates inside channel

The daily chart shows that XRP has been consolidating inside a descending parallel channel since Sept. Such channels are usually considered corrective movements. Therefore, an eventual breakout from it would be the most likely scenario. 

Furthermore, technical indicators in the daily time-0frame are bullish. Both the RSI and MACD are increasing, the former being above 50 while the latter nearly crossing into positive territory. 

In addition to this, XRP has reclaimed the minor $0.65 horizontal level.

Future movement

If a breakout from the channel occurs, the next closest resistance would be at $1.41. This is both a horizontal resistance area and the 0.618 Fib retracement resistance level.

If XRP were to move above this level, it would go a long way in suggesting that the longer-term trend is bullish, and the price will eventually move towards a new all-time high.

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