Last week, ripple made 10% gains in value. This was among the latest efforts by the third-largest cryptocurrency to advance against its nearest rival, Ethereum and Bitcoin.
According to recent Ripple analysis if bulls manage to overcome $0.2550 this week, it is quite possible that we will be seeing the XRP/BTC test the psychological $0.3000 resistance level.
Ripple Monthly Price Analysis
Looking at Ripple’s performance for the past month, the digital currency made a 30% gain. This could be a new recovery trend from its multi-year trading lows.
The current price analysis shows that ripple now tests a 200 day moving average. Thus, the 0.2550 level is a pivotal technical area to watch for in the coming days.
Ripple bulls have recently attempted entering into the XRP/USD long trade, they have been burnt as a result. However, the daily time frame reveals a large reversal pattern that is taking shape.
A run towards $0.3000 level should assist in the formation of initial stages of an inverted head and shoulders pattern. This would increase the likelihood that a major technical bottom was formed in December 2019 at $0.1750 level.
If more gains continue above the $0.2250 level, they will change the technical dynamics of the digital currency. Conversely, failure to gain traction above $0.2550 would reckon a bearish technical rejection and back towards $0.2200 support.
Short Term Price Trend
On the other hand, Ripple’s short term price analysis reveals that the digital asset is turning bullish while trading above $0.2200 level. An inverted head and shoulder pattern has been activated on the lower time frame. We could see a possible driver of the XRP/USD to the $0.3000 level.
Looking closer at the chart reveals a breakout from the neckline of the bullish head and shoulders as prices trade above $0.2350 level.
To encourage further technical buying, bulls need to form higher. Meanwhile, as BTC prices advance towards $10,000, they may lend some support to XRP/USD.
The key short term technical support for XRP/USD is currently at around $0.2280 and $0.2210 level. Currently, ripple’s price analysis shows that the crypto is trying to turn technically bullish which could result in a rally towards $0.3000 level.
BitMEX Announced New Perpetual Swaps For XRP
Meanwhile BitMEX has just announced the launch of perpetual swaps for XRP. The news was announced in a BitMEX blog post asserting that the perpetual swap would be paired against the US dollar. BitMEX exchange will be offering investors the advantage to trade XRP on the leverage of up to 50x.