The price of ripple has been unstable for quite some time. Within the last week, XRP/USD was recovering the losses accrued during the previous BTC price flash crash. This brought the markets to a downswing.
Finally, XRP caught some bullish signals and moved up the charts within the last 48 hours. The cryptocurrency broke through the resistance at $2. And aimed at higher standings as BTC went on a roller coaster ride on May 14.
Ripple is currently trading at $0.2007, having stayed above the $2 mark for about 9 hours now. As XRP turns the previous resistance at $2 to a support zone, it appears the top cryptocurrency is setting a course for the $0.25 mark.
XRP/USD 4 Hour Chart
Ripple began a bullish move when prices bounced away from the 0.38 Fibonacci retracement level where the price was only $0.17.
A 15% bull run escorted prices towards 0.5 Fib level as the price touched $0.21. This showed that the bulls were taking over and market sentiments were about to shift to the uptrend bias.
However, as BTC began to retreat on it’s bear frenzy of yesterday, ripple responded with stern correlation as prices drove back towards $0.2.
Striking the support at $0.2 (50% Fibonacci retracement level), the XRP/USD pair began consolidating around the area as a strong support level seems to the building around the zone.
Nonetheless, the construction of a rising wedge chart could be the fatal blow that scatters the bullish camp. This may eventually lead Ripple into another freefall to $0.1750 and $0.1600 support areas respectively.
At the moment, an alternative for the buyers is to push for a sideways movement between the 38.2% Fib level and the 50% Fib level.
This way they can accumulate stability and focus on launching another assault on $0.21 and $0.22 and $0.2350 resistance levels.