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XRP Price Analysis: 19 February

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Source: Pixabay

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

XRP climbed past the $0.5-mark last week, with the crypto staying well above the $0.51-level of support. At the time of writing, it was at the end of a surge from $0.53 to $0.58. In the short-term, XRP could register further gains, despite the fact that Ripple and SEC continue to be entangled in a lawsuit that recently saw the latter file an amended complaint.

XRP 30-minute chart

XRP Price Analysis: 19 February

Source: XRP/USD on TradingView

XRP broke out past its descending trendline backed by strong volume. It used the Fibonacci retracement level at $0.53 as support and sprang upwards to reach $0.582. At the time of writing, XRP saw some selling, but the trading session in question had not yet finished. The $0.57-$0.58 region and the $0.62-level were the next significant areas of resistance for XRP’s bulls, following a breakout to the upside.

Over the last 7 days, XRP has trended steadily lower on the charts. The $0.53-retracement level briefly gave in as the price slipped under $0.51, but the market’s buyers were able to force the prices higher.

A buying opportunity in the short-term would arise if XRP closes a trading session above $0.58 while flipping the $0.57-$0.58 area to one of demand.

Market Rationale

The RSI underlined the formation of a bullish divergence (white), with the price subsequently finding support at $0.53 after a brief dip under it. However, the divergence, combined with mounting trading volume, gave buyers conviction that a breakout was imminent, with XRP moving higher to close the session at $0.58.

The Directional Movement Index also suggested that a bullish event of significance had taken place. The ADX (yellow) rose above the neutral 20 value as +DI (blue) also shot upwards.

Finally, the RSI rose above 50, retesting it as support before moving higher.

These findings painted a bullish picture for XRP in the short-term, made stronger by the strength of its trading volume. However, the $0.55-$0.56 zone should serve as a region of demand. Henceforth, a dip under the same would indicate a move lower down the charts.

Conclusion

While a bullish breakout was seen, further buying opportunities would arise if the $0.57-$0.58 region sees some buyers step in. If trading volume starts to decline alongside the price, a revisit of $0.53 could be on the cards.

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Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.