Ripple upside potential capped at 22%

  • XRP price shows strength as it bounced off the daily demand zone, extending from $0.700 to $0.752.
  • Investors can expect Ripple to retest the $0.944 resistance barrier, coinciding with the 200-day SMA.
  • A breakdown of the $0.700 support level will invalidate the bullish thesis.

XRP price has witnessed a quick rally as it bounced off a crucial support level. Although the crypto market, in general, shows a bullish outlook, Ripple’s upside potential seems to be capped due to a barrage of resistance barriers.

XRP price in an uphill battle

XRP price bounced off the $0.700 to $0.752 demand zone, preventing a steep correction. The resulting upswing has propelled Ripple by 13% to where it currently trades – $0.792. Although there might be a minor retracement, investors can expect the uptrend to continue.

The initial resistance level at $0.817 is the first barrier XRP price needs to clear. Doing so will allow the remittance token to face a formidable level at $0.861 as it coincides with the 50-day Simple Moving Average (SMA).

If buyers band together, there is a chance XRP price might venture higher and retest the $0.944 hurdle, coinciding with the 200-day SMA. This move would bring the total gain for XRP price to 22%. 

Any further attempt at moving higher seems unlikely given the uncertain nature of BTC.

XRP/USDT 4-hour chart

While things are looking up for XRP price, there are a plethora of hurdles that plague its path. 

If XRP price produces a four-hour candlestick close below $0.700, it will create a lower low, invalidating the bullish thesis.

This development could open the path for Ripple to explore lower and retest the $0.60 support level.

 


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