Ripple XRP Stuck Between MAs Before Moving Higher?
Ripple coin and Shiba Inu were displaying bearish pressure in the last several months, even more so than most of the crypto market. Shiba Inu surged in October, but it couldn’t hold the gains, as the market sentiment turned quite bearish. But, toward the end of January, we saw some nice bullish momentum in these two cryptos as they reversed higher and they are still holding the gains now, while most cryptocurrencies have given them back. So it seems like these two digital coins will move higher soon, once the consolidation period ends.
Ripple Daily Chart Analysis – MAs Keeping XRP Buyers in Check
The 200 SMA stopped the surge in XRP
Ripple has been bearish as a result of the SEC lawsuit, which has been weighed on the sentiment, hence the lower highs in XRP since May last year, while the rest of the market kept making new highs until November. But, there was some sort of positive outcome earlier this month, when one of the judges of the case has given Ripple permission to respond to the SEC’s Memorandum of Law to present its fair notice defense, which might be spinning the case in Ripple’s favour.
That increased the attention of the XRP Army on social media, which improved the sentiment for Ripple. That sent XRP/USD around 50% higher, from the support around $0.60 to $0.90, where buyers met the 200 SM A(purple) on the daily chart. The 200 SMA stopped the climb and now the 100 SMA is acting as resistance as well.
Ripple Weekly Chart Analysis – The 200 SMA Acted As Support
The 50 weekly SMA has turned into resistance now
On the weekly chart, we see that Ripple has been finding support at the 200 SMA (purple) which held during the first major retreat last year in May and it held again in January this year for a second time. We saw some bullish momentum last week, but the climb has stopped and now the price remains stuck between these two MAs.
A JP Morgan report revealed that, despite the rising adoption of Ripple’s technology to enable cross-border remittances, the XRP price action remains closely correlated to the market average, which means that XRP holders are not using this crypto for transactions, so adoption is not having much impact on the XRP. Although, Ripple is not giving up gains, which points to further upside momentum once the sentiment in the market improves again.