Hi friends hope you are doing well and welcome to the new update on Ripple even though this coin is less bullish comparatively to other top cryptocurrencies however it is giving some bullish signals let’s talk about them.
Finally priceline is showing bullish bounce:
On the daily chart the priceline of XRP is moving within an up channel since Mar2020. Recently on 25th May XRP was reached at the support and got bounced from there. Now we can see a sequence of bullish candlesticks is being prepared. Even though these candlesticks are not as that much bullish as they should be after this bounce. However the continuation of green candlesticks is a bullish signal more over we can see that buying volume is being appeared with the continuation that can lead the priceline to the resistance of this channel.
Indicators are turning bullish:
If we notice the different indicators and oscillators on the daily chart then all are turning bullish. For example if we watch the moving average convergence divergence (MACD) then it was strong bearish and now it has turned weak bearish. The stochastic is already strong bullish and the relative strength index RSI was in downtrend since 29th April 2020 and now it is breaking out the down trend line that is a bullish signal. Because sofar the price action was following the trend of RSI. If RSI will be turned bullish then definitely price action will also follow the trend of relative strength index.
Simple moving averages on daily chart:
If we observe the position of the simple moving averages on the daily chart with the time period of 25, 50, 100 and 200 then it can be clearly seen that 50 SMA has moved up and formed golden cross with 100 simple moving average, if it will move further more upwards then it can form another golden cross with 200 simple moving average as well. And that is considered a very strong buying signal among the traders community. That can be a big invitation to many traders to buy XRP. However the 25 simple moving average is likely to move down and can form bear cross with 50 and 100 SMAs. But it doesn't matter because the 25 SMA is already moving sideways with these tow simple moving averages. If 25 SMA would be coming down form some distance then this death cross would produce some bearish rally.
Exponential moving averages on daily chart:
The exponential moving averages with the time period of 10 and 21 are very important to determine the bullish or bearish trend of any asset. On the daily chart of Ripple the EMA 10 and 21 are in bear cross since 13th May 2020. And the priceline is moving sideways with these two moving averages. Now the exponential moving average 10 is moving up and at this time it is very close to EMA 21 and the price action is likely to cross up these two EMAs. We need the closing of the candlesticks above these two EMAs as soon as possible in order to breakout the channel’s resistnace.
Falling wedge on long term chart:
Now let's switch to the long-term weekly chart. And here we can notice that the price action of XRP is moving in a falling wedge since August 2018. And so far priceline is not able to break out the resistance of this wedge even after several attempts. In my previous article we have seen that the bollinger bands was below the resistance of the wedge, therefore the Ripple had the bollinger bands hurdle before the wedge’s resistance. That could stop the price action to reach up to the resistance. This time the upper bands of the bollinger bands has moved up above the resistance of the falling wedge and this is a bullish signal for the breakout. Because now it can be easy for the price action to cross up the resistance of the wedge.
Indicators on long term chart:
If we watch the different indicators on the long-term weekly chart then Stochastic has turned strong from the oversold zone. And the relative strength index is moving sideways and the moving average convergence divergence is also strong bullish. As the stochastic in MACD are strong bullish therefore we can expect that RSI will also follow these bullish signals and it will be changed to bullish soon. As visiting the overbought zone after coming out from oversold by the RSI indicator is already due.
Key level resistance at $0.31:
Now I would like to recall a major key level resistance and support level for the priceline of Ripple. And that strong resistance and support level is at $0.31. If we see on the chart then it would be revealed that since the XRP was come to existance this $0.31 level has been working as powerful resistance and support level. First we can see that it has been working as a strong resistance from May 2017 to December 2017. But once this resistance was broken in December 2017 then within one month upto January 2018 price action started very powerful bullish rally that produced more than 1476% gains. And achieved more than $3 price level. Then from January 2018 to August 2019 it has been working as strong support for the priceline. But once in August 2019 this support has been broken down since then priceline could not breakout this resistance again. Therefore we can expect that once this resistance will be broken out then it can repeat the same move of Dec 2017 to Jan 2018 and produce more powerful bullish rally than the rally of 2017 to 2018. And this powerful bullish divergence can lead the XRP to reach $5 price level that will be all time high price. But if the priceline will be moved down from here then we have a strong support of $0.175 and the price action is already moving very close to this support.
Even though the Ripple is turning bullish on short term and midterm but it is still less bullish comparatively to other top cryptocurrencies. However once the XRP will be able to cross up $0.31 resistance level then it can turn more bullish than other coins.