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After 100 days of sideways action, XRP is starting to get life. Bitcoin hitting its next resistance level could give altcoins the chance it need to copy Bitcoin in price action. Do we have a few weeks of upside for Ripple's token ahead?
Highlights:
- XRP trading above 200EMA
- A small retrace to $0.35?
- Can altcoins rise with Bitcoin?
Taking a look at the daily we can see that XRP is pushing above its 200EMA after trading below it for quite some time. Volume is increasing as price is rising, which we all know is a very good sign as it indicates that interest is rising. Since we are starting to move up we will only start off by looking for resistance levels on high time frames, while XRP continues this first push. Our first resistance appears to be around $0.45, as you see in the image below. Let's take a closer look at a lower time frame to see if our Fib extension lines agrees with us and what the support levels are.
XRP/USD chart provided by Tradingview
Retrace to $0,35?
Using the Fib extension tool we measure the first impulse from the high to the low to help us see future resistance levels. We can see that it already found resistance at the 2.61 line and retraced from there. Momentum is still high with RSI drifting near or above the 70 line. RSI has also been on a nice uptrend for almost a week indicating bullish movement ahead.
Although we are currently in a bit of a retrace towards $0.35 on the smaller time frames, we should soon turn back around and push towards the price area around $0.45. Stoch RSI is another momentum indicator, and if we pull it up to see another view we can see that currently falling.
As soon as we get a signal cross below 20 on the Stoch RSI we can expect the upwards movement to continue. We can see the same movement occured on the 12th of May, where momentum reached the bottom and returned to the uptrend.
XRP/USD chart provided by Tradingview
Will altcoins finally see a return in volume now that Bitcoin is at tough resistance or will we see altcoins and bitcoin move up together? Let us know what you think in the comments below!
Disclaimer: Keep in mind this not investment or trading advice. As always, do your own research, make your own decisions.