- Ripple price reverses a pullback from a two-week high, faces key upside hurdles after snapping a three-week downtrend.
- A convergence of the 50-day SMA, seven-week resistance line guards XRP’s immediate upside.
- Sustained recovery from 100-day SMA, upbeat RSI and MACD conditions lure Ripple buyers after a downbeat August.
- XRP rebound gains momentum, but multiple resistances could slow the rise despite a broader bullish outlook.
Ripple (XRP) price picks up bids to reverse the previous pullback from a fortnightly high, up 1.0% around $2.98 early Wednesday.
In doing so, the altcoin cheers the recent increase in speculation surrounding the potential U.S. Securities and Exchange Commission (SEC) approval of the XRP exchange-traded fund (ETF).
Also read: Will Ripple (XRP) Price Break above $3.0 amid ETF Speculation? Know the Details!
Adding strength to the upside bias is the quote’s successful recovery from the 100-day Simple Moving Average (SMA), backed by upbeat momentum indicators like the 14-day Relative Strength Index (RSI) and the Moving Average Convergence and Divergence (MACD).
Still, softer trading volume and an improving market capitalization portray traders’ dilemma and test the XRP bulls along with multiple upside hurdles past $3.00. According to Santiment, Ripple’s daily trading volume eases for the second consecutive day to $4.61 billion, whereas its market cap hits a two-week high near $177.32 billion.
With this, the XRP’s short-term recovery looks promising, aligning with the broader bullish trend, though with intermediate pullbacks.
Ripple Price: Daily Chart Points To Short-Term Bullish Bias
A clear U-turn from the 100-day SMA, backed by the above 50.00 RSI and bullish MACD signals, favors the XRP bulls as they approach the $3.01 resistance confluence comprising the 50-day SMA and a descending trend line from late July. Also acting as a short-term upside hurdle is the late August swing high near $3.13.
Beyond that, a seven-month horizontal zone between $3.33 and $3.40 will be the last line of defense for the bears, a break of which will potentially open the door to challenge the record high near $3.67 and target the psychological $4.00 level.
Alternatively, the XRP’s failure to offer a daily close beyond $3.01 can drag it back to the previous weekly top surrounding $2.89 and then to the 100-day SMA support of $2.73.
However, a drop below $2.73 remains unlikely unless sellers break the six-month-old previous resistance line, now acting as support near $2.65.
Below $2.65, the 200-day SMA at $2.48 and an ascending support line from April near $2.20 act as crucial support; breaking these could threaten XRP’s three-year uptrend.
Ripple Price: Four-Hour Chart Also Favors Recovery
On the four-hour chart, the 200-bar SMA guards the XRP’s immediate upside near $2.99, quickly followed by a seven-week descending resistance line near $3.01.
Notably, the previous monthly high, near $3.38, acts as an additional upside hurdle for the Ripple buyers to cross, in addition to the higher daily chart levels, to regain control.
Meanwhile, a week-long ascending trendline joins the 50-bar SMA to highlight $2.87 as a nearby key support before shifting the market’s attention to the deeper levels discussed on the daily chart.
Conclusion
Ripple’s short-term recovery looks gaining momentum despite Tuesday’s retreat, driven by upbeat RSI and MACD signals, as well as the sustained trading beyond the 100-day SMA. However, the bulls need validation from multiple resistances past $3.00 to keep control after snapping a two-week downtrend, and also witnessing the first monthly loss in three.
Also read: Cryptocurrency Weekly Price Prediction: BTC, XRP Rebound, But ETH Lags, amid Fed Rate Cut Buzz
