Ripple price is trading at $0.4665, up 7% over the last week. The recent surge in the value of XRP has captivated investors and the “XRP Army” who are amazed at the ability of Ripple Labs to defy the odds and progressively develop the blockchain.
The gains seen over the last week have injected a whooping $1.9 billion in XRP’s total market value to bring it to around $23.7 billion at the time of writing. Along with this surge in market cap, market participants have transacted over $670 million worth of XRP (~1.471 billion tokens) over the last 24 hours.
These numbers point to increased investor confidence in the international remittances token. It also hints at the potential of XRP to make a significant recovery in the near term.
XRP Price Seeks A Return To $0.58
Ripple’s downtrend between April 29 and May 11 was halted by the $0.4117 support wall, embraced by the 200-day Simple Moving Average (SMA). This buyer congestion zone provided a launch pad that propelled XRP 16% higher to set a local high at $0.4764.
Rejection from the 50-day SMA sent the price lower to the current price. Increased buying pressure could take XRP from here with the first barrier emerging from the 50-day SMA at $0.4733.
More hurdles could arise from the $0.4840 range high and the $0.550 psychological psychological level, before reaching the $0.5849 range high. Such a move would represent a 25.79% climb from the current price.
XRP/USD Daily Chart
Supporting this positive outlook for XRP is the upward trajectory taken by the Relative Strength Index (RSI). The price strength at 54 suggested that there were still more buyers than sellers in the XRP market, who were focused on scaling its price higher.
Also validating the bullish thesis for Ripple is the upward movement of the Moving Average Convergence Divergence (MACD) indicator. This trend-following indicator had sent a call to buy XRP on May 17, when the MACD line (blue) crossed above the signal line (orange). This bullish signal was still in play, suggesting that the market conditions still favored the upside.
Note that XRP enjoyed relatively robust support on the downside, adding credence to the bullish outlook. These were areas represented by the 100-day and 2000-day SMAs at $0.441 and $0.4117 respectively. These demand zones provide potential breathing zones for buyers, allowing them to regroup, buy more on the dip and stage another recovery.
On the downside, the 50-day SMA was suppressing the price on the upside. Failure to produce a daily candlestick close above this SMA would suggest weakness amongst the buyers. If this happens, XRP would turn down, revisiting the SMAs described above toward the $0.4 psychological level.
Traders could expect XRP price to take a breather here, before making another attempt at recovery.
