FxNews—Our previous Ripple (XRP) technical analysis stated that if the cryptocurrency’s value exceeds the descending trendline, the uptrend will likely resume. That prediction unfolded, and as a result, XRP/USD began a new bullish wave.
As of this writing, XRP trades at approximately $1.87, pulling away from the $2.0 barrier.
Ripple (XRP) Technical Analysis
The technical indicators show the cryptocurrency pair trades above the 50-period simple moving average, which means the primary trend is bullish. However, the Stochastic Oscillator and RSI 14 hover in overbought territory, hinting that XRP is overbought, at least in the short term.
Overall, the technical tools suggest while the primary trend is bullish, Ripple is overpriced; hence, a consolidation phase toward lower support levels could be on the horizon.
Ripple Reaches Yearly High of $2 Poised for More Gains
The immediate support is at $1.83. If bears push XRP/USD below this bearish barrier, a new consolidation phase could begin. In this scenario, the market could resume its consolidation phase near $1.72, followed by $1.44.
Please note that these supply levels offer a decent bid to join the bull market at a low-risk price with a higher return. Therefore, retail traders and investors should monitor these levels for bullish signals, such as candlestick patterns.
That said, the trend outlook remains bullish if XRP’s value is greater than $1.3. Furthermore, if bulls pull the market above the $2.0 critical resistance, the next bullish target could be $2.4.