Ripple's token XRP has reached a four-month high of $0.66 amid growing optimism about the settlement of the Ripple and SEC lawsuit. The price increase was also driven by Ripple's new partnership in the United Arab Emirates (UAE), indicating a favorable trend for the cryptocurrency. The rise has attracted more XRP sharks and whales, indicating confidence, but there is also the potential for volatility if there is a large sell-off.
Will XRP rise further?
Although 2024 was expected to be a big year for Ripple, progress has been slower than expected.
XRP performed well in July but was affected by the recent cryptocurrency market downturn.
Nonetheless, new partnerships and legal optimism suggest XRP could soon experience a significant boost.
Yesterday, XRP price formed a bottom above $0.450 and started a sharp increase, outperforming Ethereum and Bitcoin. The price was able to break the $0.5150 and $0.550 resistance levels.
The price rallied more than 25% and broke multiple barriers near the $0.600 level. The price formed a high at $0.6473 and recently corrected some gains. The price declined below the $0.600 level. The price declined below the 23.6% Fibonacci retracement level of the upward move from the $0.4922 swing low to $0.6477 high.
However, the bulls are active near the $0.5880 level. It is still trading above the $0.600 level and the 100 hourly simple moving average. On the upside, the price is facing hurdles near the $0.6250 level.
The first major resistance is near the $0.6350 level. The next key resistance is likely to be $0.640. If the $0.640 resistance is clearly broken, the price could drop towards the $0.6550 resistance level. The next major resistance is near the $0.6880 level. If gains continue, the price could drop towards the $0.700 resistance level or even $0.720 in the near term.
Is there support for XRP's decline?
If XRP fails to clear the $0.620 resistance zone, it could decline again. An initial support on the downside is near the $0.600 level. The next major support is at $0.5880.
If there is a downside break and close below $0.5880, the price could continue to decline towards the $0.570 support or the 50% Fibonacci retracement level of the upward move from the $0.4922 swing low to $0.6477 high. The next major support is at $0.540.
Technical indicators
Hourly MACD – The MACD for XRP/USD is currently accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $0.600 and $0.5880.
Major Resistance Levels – $0.6200 and $0.6400.
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