- XRP price failed to test the $0.941 to $1.172 demand zone before surging higher.
- Clearing the supply barrier ranging from $1.340 to $1.477 could propel Ripple to $1.769.
- A breakdown of $0.941 will invalidate the bullish thesis and trigger a new downtrend.
XRP price has witnessed a massive crash due to the Tesla-induced market crash on Wednesday. Now Ripple could either test the immediate demand barrier or slice through the supply zone to rally higher.
XRP price hints at a u-turn
XRP price dropped roughly 32% after creating a local top on May 6. Since this point, Ripple has continued forming lower highs and lower lows. Two of its recent attempts to surge higher seem to have failed due to lacking bullish momentum and resistance from the supply zone that stretches from $1.340 to $1.477.
Therefore, it is likely that XRP price will retrace 12% to tag the support area that extends from $0.941 to $1.172. This move will provide the remittance token the extra “oomph” required to slice through the said resistance zone.
A decisive 4-hour candlestick close above $1.477 will provide a secondary confirmation of the upswing.
The first area of interest in this uptrend is the 162% Fibonacci extension level at $1.653. If buying pressure persists beyond this point, XRP price could tag the swing high at $1.769. All in all, this bull rally would denote a 30% rise from the current price level.
XRP/USDT 4-hour chart
While things seem to be looking up for XRP price, investors need to be aware of a sudden spike in selling pressure that crashes the market as it did during Wednesday or Thursday’s trading session. If the sellers slice through the $0.941 support level in a convincing fashion, it will invalidate the bullish thesis and open up the possibility of an extended downtrend.
In that case, XRP price might slide 6% to tag the swing low at $0.886, created on April 23.