Ripple (XRP) Might Have Found A Temporary Support: Time To Buy XRP?

16 Sep 2023 by Crypto Presale 2 min read

Over the last 24 hours, Ripple’s (XRP) price has increased by 0.62%, rising from $0.489 to $0.494. Over the last week, it has seen a minor 1.77% decline. However, looking at the broader picture, Ripple (XRP) has gained a remarkable 52% since the start of the year, giving investors a decent return on their investment.

Earlier in the year, Ripple (XRP) had a nice rally after it partially won the case against the US SEC, jumping by almost 100% in a day. However, this rally was short-lived, as the gains made had been wiped off.

Technical Analysis

Daily Timeframe

Ripple has been in a free fall since July, falling from its high of $0.80 and currently finding support around the $0.49 region. Right now, it seems like the buyers are trying to push the price up, and they might be successful in doing so. XRP is resting on a major trendline, and the RSI is also showing signs of bullish divergence. Which shows that the bulls are trying to wrestle power from the bears.

If they are successful and push the price above the $0.55 key level, we might see XRP revisit the previous high of $0.9 before the year's end.

4 Hour Timeframe

Source: Tradingview

On the 4-hour timeframe, we have a falling wedge, which shows signs of a bullish reversal. We also had the candlesticks trading above the 50-day EMA for the first time in September. The Relative Strength Index (RSI) has climbed above the 50% band, and if this bullish momentum continues, we might see XRP break out of the wedge. A close above $0.55 will mean the buyers are in a dominant position, and we could see the price of XRP rally soon.

Time to Buy XRP?

In addition to the price action, fundamental news is providing support. Firstly, an important upgrade is on the horizon for the XRP ledger. Ripple's CTO believes that although short-term selling pressure could occur, the overall effect should be beneficial for XRP’s price. Also, Bitstamp's recent announcement of temporarily boosted XRP APYs for lending on their platform adds a supplementary layer of positive sentiment. These combined factors suggest a potentially favourable outlook for XRP's price.

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