XRP (Ripple) Follows Suit As Bitcoin, Ethereum Rally To New Highs Amid Crypto Boom

XRP (Ripple) Follows Suit As Bitcoin, Ethereum Rally To New Highs Amid Crypto Boom

XRP XRP/USD, the crypto associated with Ripple, broke up from a pennant pattern on Nov. 2 and soared over 11% higher over the two 24-hour periods that followed. On Nov. 6, XRP back-tested the upper descending trendline as support and held above it, which gave the crypto the power to head about 18% north between Saturday and Monday.

XRP is likely following the broader crypto market which saw Bitcoin BTC/USD trading within less than 1% from its Oct. 20 all-time high of $66,999 and Ethereum ETH/USD pushing to a new all-time high on Monday.

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The XRP Chart: XRP reversed into an uptrend on Oct. 27 and has made a consistent series of higher highs and higher lows. The crypto topped out at the $1.25 level on Nov. 4, which created a higher high, then retraced to the $1.09 level two days later before printing a higher high on Monday at $1.29.

If XRP closed the 24-hour period below about $1.27 it will print a bearish shooting star candlestick on the daily chart, which may indicate lower prices may come on Tuesday. As long as the crypto doesn’t fall below the Nov. 6 low-of-day, XRP will remain in its uptrend.

XRP’s relative strength index (RSI) is measuring in at about 64%, which is nearing overbought territory. When a stock or crypto’s RSI nears or reaches the 70% level, it can be a sell signal for technical traders. XRP has retraced from its highs three times over the past two months when its RSI has reached 64%.

The crypto had above-average volume on Monday, which indicates a high level of trader and investor interest. By midafternoon XRP’s daily volume came in at about 18 million compared to the average 10-day volume of 14 million.

XRP is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

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  • Bulls want to see consolidation in the form of a higher low help to drop XRP’s RSI and then for big bullish volume to come in and push the crypto up above Monday’s high-of-day. XRP has resistance above at $1.39 and $1.47.
  • Bears want to see big bearish volume drop XRP down to make a lower low, which will negate the uptrend. The crypto has support at $1.22 and $1.13.

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