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Ripple (XRP) breaks above $1 for the first time since 2018

Ripple’s XRP had a major breakthrough rising above the $1 mark for the first time since mid-February 2018. The sudden upswing came after the fourth-largest cryptocurrency by market capitalization broke out of an inverse head-and-shoulders...

Jay Sharma

9 minutes

Ripple’s XRP had a major breakthrough rising above the $1 mark for the first time since mid-February 2018. The sudden upswing came after the fourth-largest cryptocurrency by market capitalization broke out of an inverse head-and-shoulders. This altcoin surged to a high of $1.10, extremely close to the inverse head-and-shoulders’ target of $1.13. Given the significance of the bullish momentum behind XRP, investors could take advantage of the recent price action to book profits.

Profit-Taking Halts the Rally

The short-term pessimistic scenario is corroborated by the emergence of several bearish signals on the token’s hourly chart.

chart

For instance, the Tom DeMark (TD) Sequential indicator presented a sell signal in the form of a green nine candlestick, which has transitioned into a red one candle due to the spike in profit-taking. The bearish formation forecasts a one to four hourly candlesticks correction before the uptrend resumes.

The development of a bearish divergence between XRP’s price and the Relative Strength Index (RSI) adds credence to this thesis. While this altcoin was making a series of higher highs, the RSI created lower lows.

Such behavior, especially when the RSI is above the 80 mark, indicates trend exhaustion is near.

If market participants were to realize profits around the current price levels, XRP might lose the 78.6% Fibonacci retracement level at $0.96 as support. Moving past this crucial hurdle could trigger a downswing to the 61.8% or 50% Fibonacci retracement level.

These interest areas sit at $0.85 and $0.79, respectively.

Regardless of the mounting bearish signals on the lower time frames, the cryptocurrency market’s speculative nature makes it impossible to disregard the bullish outlook.

Further buying pressure behind XRP that sends it above the recent high of $1.10 may be significant enough to invalidate the TD’s sell signal. Under such unique circumstances, XRP could shoot up to the 127.2% Fibonacci retracement level at $1.33.

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Written By

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Jay Sharma

Jay is a seasoned crypto entrepreneur and technology innovator. As the Founder and CEO of Botsfolio, he has been at the forefront of the blockchain revolution since 2017. His practical experience extends to the technical nuances of crypto mining, having successfully built and managed a substantial GPU mining operation. Jay developed a groundbreaking decentralised application for fractional real estate NFTs. This innovative project garnered significant recognition. Through his hands-on experience and analysis, he aims to provide valuable guidance and empower others to navigate the dynamic crypto landscape.

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The content, portfolios, and insights presented on this platform are provided for informational purposes only and do not constitute financial, investment, or trading advice. Kribx Inc. and its affiliated influencers are not registered investment advisors or broker-dealers. Cryptocurrency trading involves substantial risk and may result in the loss of capital. Users are solely responsible for their trading decisions. Past performance is not indicative of future results.

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