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XRP buyers aim to sustain 20-day EMA and target 40% yields

Cryptopolitan


TL;DR Breakdown

  • XRP bulls attempted to break above the June high of $1.07
  • To overcome any weaknesses, they ought to sustain XRP above 20-day EMA
  • XRP price has formed a cup-with-handle on a 4-hour chart targeting  40% returns

XRP Price Prediction: General price overview

XRP bulls attempted to break above the June high of $1.07 during the start of the new month but were strongly rejected at the 20-day exponential moving average. A bearish trendline started that corrected below the first resistance level at $1.05  and slightly above the 40-day moving average. The present pattern has formed a cup-with-handle across the 4-hour chart targeting  40% returns will the price adjust itself from the current price level of $1.03 and hit $1.5.  Buyers are hoping the base will resolve any time within the next few days, given the consistent development of the volume on the cup’s right side and a residing volume towards the handle.

The bears are instigating selling pressure in a target to break below 38.2% Fibonacci retracement of the downward movement to a 13-week low. A move that is likely to measure in between the April – May decline and break below the first support level at $0.99. Such a move would be catastrophic for the bulls and would eventually adjust Xrp below the 50-day 4-hour simple moving average at $0.957. Selling pressure would heighten and signal another bearish test between the price level of $0.800 – $0.850. A range that did happen following high selling pressure which resulted on May 19’s bottom. 

For the bulls to overcome any weaknesses, they ought to sustain XRPabove the 20-day EMA.  If they manage to win support from the broader market, it will be possible for an uptrend to end above the 50-day simple moving average. However, the possibility of such a move is slim given what on-chain analytics are suggesting. 

On 2nd June, the number of XRP’s daily active addresses (DAA) declined by 83%, from a 12th April peak of 49,657 to 8,098. This data is the lowest that has ever happened to Ripple since December 2020.  Residing DAA suggests residing numbers of daily interactions with the cryptocurrency and it is a bearish signal. Xrp price history reveals that past price rallies have always been supported by a high active address. 

Ripple Price Prediction: XRP price movement on the 24-hour chart

Meanwhile, Ripple did start the week well after buyer strength catalyzed a percentage gain of 15.   The bears however seem reluctant to let go of the resistance at $1.07. This calls for broader market support to have XRP rally towards $1.1 and the next target at $1.34

Source: Tradeview

Ripple Price Prediction: XRP 4-hour price chart

XRP has formed an ascending triangle on the 4-hour chart as the price action attempts to beat a roof resistance at $1.05. The closing candles are however red indicating the possibility of a downtrend.  The possibility of achieving $1.10, at the 20-day moving average depends on the bull’s ability to break above roof resistance. 

XRP Price Prediction: XRP buyers aim to sustain 20-day EMA and target 40% yields 2
Source: Tradeview

Conclusion 

Ripple and the US Securities and Exchange Commission are still head to head on legal suit against Ripple Labs. Fresh updates about the legal suit are Ripple seems at the cusp of winning after the law appears to be in favor of the company in withholding important information.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.



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