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Ripple finally managed to break above $0.45

Ripple XRP Stuck Between MAs Before Moving Higher?

Posted Wednesday, February 16, 2022 by
Skerdian Meta • 2 min read

Gold has been showing resilience in 2023, opening around $1,800 and continuing higher, where it formed a support zone, which held throughout the year. Buyers have been in control during most of the year and they broke above the all-time high at $2,075 in the first week of December, but the price retreated lower below $1,900 again, however buyers have stepped in and now they are threatening the previous resistance for a second time.We have seen a few technical setbacks in Gold this year. However, XAU/USD has now risen to sit higher, recovering from around $1,974 after finding support at the 50 SMA (yellow) on the daily chart. The price bounced off that moving average and now the 20 SMA (gray) has turned into support for Gold, indicating that the buying pressure remains strong.Gold Daily Chart – Can Buyers Push Above the Resistance? Smaller MAs are now turning into support for XAUHowever, the important resistance zone from the 2,020 high at around $2,075 remains on the daily, weekly, and monthly charts, and it is the critical level to watch heading into next year. The break above this level early this month came as a bit of a fluke, as the price spiked higher on geopolitical news. So, this time buyers don't have the same stamina as back then. So, Gold remains in demand as the economic and political uncertainties remain high across the globe. January is the best month for XAU though. But the rally since November also comes on the back of a weaker USD, while bond yields have been retreating lower, which is a key driver for [[Gold]] in particular. The market is stepping up pricing for central bank rate cuts in 2024 which has been pulling the USD lower and pushing Gold prices higher. But, buyers will have to push above $2,075 first to keep the bullish momentum going, so one step at a time.Gold Live Chart [[Gold-graph]]

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.