XRP price must break this key resistance to regain bullish momentum

0

XRP holders are still struggling around the $0.30 area while the majority of the cryptocurrency markets are euphoric with Bitcoin (BTC) price surpassing $40,000.

BTC price is currently over 100% higher than the previous all-time high in 2017, while XRP’s price is still down more than 90% from the all-time high in 2017. A lawsuit from the SEC against Ripple is certainly not bullish and is the primary reason for this overall weakness as this is prompting some exchanges to delist.

However, the chart might give some potential bullish outlook for the short term period if XRP’s price breaks several crucial resistance levels.

Resistance at $0.32-0.345 must break for more upsid

XRP/USD 3-day chart. Source: TradingView

The XRP chart shows a very odd price pattern, as XRP’s price flipped the $0.21 area for support beautifully in 2020. This support/resistance flip caused a breakout above the significant resistance zone at $0.32-0.35. This breakout led to a run toward the $0.80 region, one of the most significant surges of XRP in recent years.

However, fundamentals kicked in as the SEC unveiled a lawsuit against Ripple, causing the price of XRP to tumble down into the range.

Now, the structure itself is destroyed and looks quite odd to chart on. Regardless of that bizarre move, crucial and beneficial levels can still be determined from here.

The critical level to hold for the bulls is the range low at $0.21-0.23, which once again provided a support in recent weeks.

Yes, the candles dipped below $0.21-0.23. However, the candle closes were above, indicating that support was found for XRP.

On the lower time frames, the $0.295 area is critical

XRP/USD 1-hour chart. Source: TradingView

Traders often zoom in to lower time frames to spot critical levels. Based on the higher time frames, critical levels are defined at $0.21-0.23 and $0.32-0.35 as support and resistance zones.