After a ten-day price surge, Ripple (XRP) has initiated a pullback that is currently at its critical point
Fundamentals and past price performance
XRP has recently gained some upwards momentum thanks to three factors, namely:
- The investors that stayed with XRP are the ones that believe that the US SEC lawsuit won’t pose a problem for the cryptocurrency, and any new investors should be of the same opinion;
- A pump & dump-like influence from the r/WallStreetBets community, that listed XRP (alongside Dogecoin) as one of the cryptocurrencies they want to trade;
- The UK Treasury deemed XRP as “not-a-security” in a report from January 2021.
Despite the major shakeup that XRP has experienced since the SEC announced its lawsuit against Ripple Labs (XRP’s founding company) and its executives, the cryptocurrency still has many supporters:
— CryptoBull2020 (@CryptoBull2020) February 14, 2021
Taking a look at its week-over-week performance, XRP managed to post gains of 18.27%.
At the time of writing, XRP is trading for $0.559, which represents a 108.53% gain when compared to the previous month’s value. The sixth-largest cryptocurrency by market cap currently boasts a value of $25.29 billion.
XRP/USD daily chart price analysis
XRP has been in a constant uptrend ever since 2 February. However, this uptrend ended when XRP couldn’t pass the $0.645 level, which initiated the latest pullback.
XRP is now at a crossroads as it fights for the 61.8% Fib retracement pivot point level. Ending up above or below this level will determine its short-term future.
XRP’s upside is well-protected by the zone between $0.64 and $0.72, while its downside’s closest support level lies at just below $0.5.
The technical overview shows that XRP’s RSI indicator on the daily timeframe has left the overbought territory after briefly stepping in it. Its current value is standing at 63.33.
XRP/USD hourly chart price analysis
Zooming in to the hourly chart, we can see XRP’s pullback session has lasted for three days now. The price kept creating lower lows and lower highs until it reached the 61.8% Fib retracement level pivot point.
With the 21-hour and 50-hour EMAs standing directly above XRP’s price, it will be incredibly difficult for it to push upwards. However, if the cryptocurrency ends up below $0.553, it will most likely contest the $0.50 level, or even drop to $0.48.