In the cryptocurrency market, especially for investors involved in derivative transactions, technical analysis is an important indicator that needs to be constantly monitored. What does the technical analysis show for Ripple, which is currently trading at $0.6013? We investigate the answer to this question by examining detailed charts and analyzing key support and resistance levels.
The first notable formation on Ripple’s four-hour chart is the descending channel formation. Despite breaking the resistance line after the rise on November 26th, XRP faced significant selling pressure at this level. Subsequently, XRP continued to lose momentum and closed below the critical support level of the 200 EMA (red line).
The most important support levels to be followed on XRP’s four-hour chart are $0.5976, $0.5879, and $0.5773. A close below the significant level of $0.5976, which played a crucial role last week, will cause XRP to lose momentum in the short term.
The most important resistance levels to be monitored on the four-hour chart for XRP are $0.6076, $0.6138, and $0.6251. A close above the level of $0.6251, especially intersecting with the 200 EMA level, can lead to an exit from the descending channel formation and allow XRP to trade above the 200 EMA level.
One of the most critical metrics to be monitored in the altcoin market is the performance of altcoins against the price of Bitcoin, which can be evaluated through Bitcoin pairs. A breakdown in the XRP/BTC pair can result in significant losses for Ripple investors. A daily bar closing below the long-standing support line and at this level can lead to a decline in Ripple’s value against Bitcoin.
The important support levels for the XRP/BTC pair are 0.00001573, 0.00001507, and 0.00001450. A bar closing below the level of 0.00001573 will cause a breakdown of the support line and a loss of momentum for Ripple. The resistance levels are 0.00001650, 0.00001695, and 0.00001776. Especially a close above the level of 0.00001650 can allow Ripple to gain value against Bitcoin in the short term.