In the past week XRP/USD had a move up. Resistance R1 of 0.50 usd was broken up. This move was quite probable given that XRP / USD had a bottom in the last few weeks at 0.37 USD, after which it had a consolidation move. Traders have been quite determined, buying quite large volumes of XRP. The upward movement of the past few days was less aggressive than the one in September. I would say this move up was a more natural and healthier one. Typically, aggressive moves upward are followed by equally aggressive movements down.
The next resistance area is 0.62 usd. In September, this area was tested twice, but unfortunately it was not broken up. That means we have a pretty strong resistance at 0.62 usd. However, the more we test a resistance area, it becomes weaker. At the third or fourth test, it will be broken up. This break up of the resistance area at 0.62 usd will occur when the buy volumes are high enough.
The resistance lines: The support lines:
R1 – 0,60 usd S1 – 0,45 usd
R2 – 1 usd (psychological) S2 – 0,36 usd
S3 – 0,25 usd (bottom)
What’s happening on XRP / USD next week?
When I was writing this technical analysis on XRP/USD, I started a corrective move. For the next week we have two scenarios.
1. If the price will remain over the area of 0.50 usd, and it will not be broken down, it will be confirmed that the previous resistance zone has turned into a support area. This will create the premise for the price to rise to R1- 0.62 usd and test for the third time this zone of resistance.
2. The correction started at this point could become higher and the XRP/USD price could fall to 0.45 usd, after which it will start a new upward movement to 0.62 usd. This move up to 0.62 usd could occur over the next two, three weeks, characterized by a lateral movement ending with a jump of up to 0.62 usd.