Ripple’s price has surged in recent weeks, after breaking above the significant resistance level of $0.43. However, it may be too early for bulls to celebrate the end of the bear market as warning signals are emerging.
XRP/USDT daily chart:
The price has been rising almost vertically over the past few weeks, following a break above the $0.43 level and the 50- and 200-day moving averages, which sit around the $0.4 mark.
These moving averages are also about to cross on the upside, as the 50-day moving average almost exceeds the 200-day moving average on the upside. However, from a classic price action perspective, things don’t look so good.
The price has been definitively rejected from the key resistance level of $0.55, and the RSI is showing a clear bearish divergence between the last two price highs, indicating that a correction may occur soon. In this case, the $0.43 support level would be the first potential support zone.
XRP/BTC daily chart:
Against BTC, things look even worse, as the price appears to be falling back inside the broken descending channel after being impulsively rejected from the 200-day moving average around 0.00002 SAT. If the 0.000018 SAT level fails to hold, the recent breakout would be considered false and could cause the price to drop deeper inside the channel towards the short-term 0.000016 SAT.
On the other hand, if the market rebounds from the current area, the 200-day moving average would be the first target, followed by the 0.000022 SAT static resistance level. However, judging by the current price action, a pullback seems more likely in the near term.
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Cryptocurrency charts by TradingView.