This may bring further upward momentum in the short term.
During the past week, XRP formed a support base above the $0.3500 area. The price gradually rose above the $0.3650 resistance area, albeit at a slower pace compared to Bitcoin and Ethereum.
Eventually, the bulls cleared a significant barrier near the $0.4000 area. Additionally, the XRP/USD currency pair broke out of a contracting triangle on the hourly chart above the $0.3980 resistance level. The pair surged and broke the $0.4500 resistance area.
XRP price approached the $0.5000 resistance level and reached a peak near $0.4926 before correcting lower. Currently, the price is above the $0.4400 level and the 100 hourly simple moving average.
Although the price dipped below the 0.4926% Fibonacci retracement level of the upward move from $0.3720 to $0.4926, the bulls remain active above the $0.4400 level. The initial resistance is near the $0.4700 area, followed by the first major resistance at $0.4950.
If the price breaks the $0.5000 level, it could reach the resistance level at $0.5250. Further upward movement could push XRP towards the $0.5400 level.
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XRP Price Surges Over 20% – Here’s Why
However, if the cryptocurrency fails to break the $0.4950 resistance area, it could continue to decline. The initial support on the downside is near the $0.4400 level, followed by the major support at $0.4320. If the price falls below and closes below $0.4320, it could extend losses and even test the $0.4000 support area.