Ripple analysis: Bulls need to overcome the $0.2550 level
14:15, 4 February 2020
Ripple gained over 10 per cent in value last week, as the third largest cryptocurrency finally started to advance alongside its nearest rivals Ethereum and Bitcoin.
Ripple analysis shows that if bulls overcome the $0.2550 level this week the XRP/USD pair could test towards the psychological $0.3000 resistance level.
Ripple medium-term price trend
Ripple closed the month of January with an extremely healthy 30 per cent gain, as the cryptocurrency finally started to recover from multi-year trading lows.
Ripple price analysis shows that the cryptocurrency is now testing its 200-day moving average, making the $0.2550 level a pivotal technical area to watch this week.
Ripple bulls have been burnt trying to enter into the XRP/USD long trade over recent months, however, the daily time frame shows that a large reversal pattern is finally taking shape.
A rally towards the $0.3000 level would help to form the initial stages of an inverted head and shoulders pattern, which increases the likelihood that a major technical bottom was formed in December 2019, around the $0.1750 level.
Continued gains above the $0.2550 level may start to change the technical dynamics behind the cryptocurrency, while failure to gain traction above the $0.2550 could force a bearish technical rejection back towards the $0.2200 support area.
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Ripple short-term price trend
Ripple technical analysis over the short term shows that the cryptocurrency has turned bullish while trading above the $0.2200 level.
An inverted head and shoulders pattern has finally been triggered on the lower time frame, which could propel the XRP/USD pair towards the $0.3000.
The breakout from the neckline of a bullish inverted head-and-shoulders is valid while price trades above the $0.2350 level.
Bulls need to keep forming higher highs to encourage further technical buying, while an advance in Bitcoin towards the $10,000 level may also lend the XRP/USD pair some support.
Key short-term technical support for the XRP/USD pair is currently located around the $0.2280 and $0.2210 level.
Ripple technical summary
Ripple price analysis indicates that the cryptocurrency is attempting to turn technically bullish and could rally towards the $0.3000 level.