The technical analysis in the cryptocurrency market is emerging as an important indicator, especially for investors who engage in futures trading. At the time of writing, Ripple is trading at $0.6267. What clues does the technical analysis provide for Ripple? We are examining this through a detailed chart analysis and key support and resistance levels.
The most important formation to follow in Ripple’s daily chart is the ascending channel formation. The break of the formation resistance in the first week of November led many investors into a bull trap, causing significant losses in the futures market. The touch of the last bar formations to the support line could lead to Ripple gaining momentum soon.
The most important support levels to follow on the daily chart for XRP are, respectively; $0.6058, $0.5916, and $0.5777. In particular, a daily bar closing below the $0.5916 level may lead to XRP losing both the support of EMA 7 (blue line) and the break of the support line, which can result in selling pressure.
The most important resistance levels on the daily chart for XRP are, respectively; $0.6413, $0.6598, and $0.6894. Especially, a daily bar closing above the $0.6413 level, which has been a significant barrier in the last two rally attempts, will accelerate the price momentum of XRP.
The decline in XRP price and the rise in Bitcoin price have caused a significant break in the XRP/BTC chart. Accordingly, the break of the descending channel formation in the daily XRP/BTC chart may lead to a significant loss of value for XRP against Bitcoin. The most important support levels to follow on the daily XRP/BTC chart are, respectively; 0.00001400, 0.00001340, and 0.00001285. Especially, a bar closing below the significant support level of 0.00001400 in the last bar formations will lead to a decline in the XRP/BTC chart.