XRP Price Prediction: Is XRP stuck between $0.55 & $0.42?

XRP price has found itself stuck between two key levels. This range-bound market is giving a good opportunity to swing traders but causing confusion for long-term investors. The bulls are finding it difficult to break above a mid-term resistance of $0.553.

• XRP/USDT is down 1.24% today.
• XRP/USDT is on course to form a double top pattern which can be a danger for bulls

XRP/USDT is trading at $0.487 after taking a dump from its daily resistance of $0.553. This turmoil led to the depreciation of the digital asset by 13%. The rejection is also contributing to the development of a potential double-top pattern. This Formation has a potential target of $0.296 which is a 29.60% downhill ride, from the neckline at $0.421.

The Daily chart shows the XRP price is forming a double-top pattern

Source: XRP/USDT by TradingView : https://www.tradingview.com/x/5graYnUT/

The Daily time frame is telling that XRP price is in a minor uptrend since the beginning of this Year. The Price has surged almost 80% during this uptrend. The Main barrier to this uptrend is the level of $0.553. The Bulls have made multiple attempts to deliver a sustained breakout, but have failed so far. The price is moving above the daily Support level of $0.421. 

A trendline that was formed during its brief uptrend is playing an important role of keeping the prices in the upward direction. The price saw a rally of almost 30% as it bounced from the trendline along with the Daily support, establishing its bullish significance. Meanwhile, the Daily 200 EMA contributes to support and the bulls remain confident as long as the price is above all of these levels.

The 4H chart shows a minor consolidation

Source: XRP/USDT by TradingView: https://www.tradingview.com/x/45S1jWvI/

On the 4H Chart, the price is displaying the characteristics of a minor downtrend and sideways consolidation. The bulls are weak which is evident by the inability to hold the 200 EMA on the 4H time frame. The price is managed a close below the 15 and 9 EMA. This is an indication of bearish action in the short term.

The XRP price is crawling its way to important levels and the bears are looking forward to testing the defense power of the bulls. The First line of defense will be the trendline which is getting the support of the Daily 200 EMA. A breach would trigger panic selling and the market can flag off the bear season. On the contrary, the bulls can still manage a potential 14.21% move to its daily resistance and a break above can shoot up the prices another 24% to the next resistance at $0.689

RSI:

The RSI indicator is currently at 46.44 and the RSI has crossed the MA line towards the downside. This is a sign of bearish to sideways market condition.

MACD:

The MACD indicator is about to make a bearish crossover and the MACD line may come below zero which is a sign of bearish momentum.

200 EMA:

As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average) which acts as a significant support. This is a clear indication of an uptrend where the buyers are in control and for a trend reversal, the price must break and trade below the 200 EMA.

Technical levels

Support Levels: $0.450 – Support 1

    $0.442 – Support 2

Current Price: $0.487

Resistance Levels: $0.500 – Resistance 1

$0.553 – Resistance 2

Conclusion

XRP price is in a deciding phase where the market will decide whether to continue the bull run or flagg-off the bear season. This decision will decide the course of XRP in the short to mid-term. The bulls must watch the resistance level of $.500 and $0.532, A successful break above these levels will confirm the seats to the next bull season. The double top pattern will be confirmed if the level of $0.421 is breached. This event can bring down the market significantly.