Fibonacci Retracement in Play!
The XRP/USD was closed at 1.79630 after placing a high of 1.85170 and a low of 1.45521. Ripple prices surged sharply by more than 20% on Tuesday and reached above 1.8500 level. This surge was the largest one-day percentage gain since April 10. Ripple also followed the rise in Bitcoin on Tuesday, just like other cryptocurrencies, and reached its 3-year high level above $1.85. Bitcoin finally broke its previous ATH and reached above $63,000 on Tuesday, pushing the entire cryptocurrency market higher.
Bitcoin has been gaining recently because of the increased adoption by big institutions and the upcoming listing of Coinbase exchange on NASDAQ on Wednesday. The positive news from MicroStrategy Inc. to pay its board of directors with Bitcoin and Times Magazine and Tesla Inc. to hold Bitcoin has pushed BTC/USD prices above its ATH.
On the Ripple front, it is no secret that the token is facing legal troubles due to an ongoing legal battle with SEC. But Ripple has managed to gain massive gains in value because of recent victories in the lawsuit. These positive developments in the Ripple case against US SEC have provided strength to XRP prices that have shifted the trend to positive. Over the previous seven days, XRP has seen a rise in its value with more than 87% gains. The trend is likely followed given the recent spike in the cryptocurrency market.
On the U.S. dollar front, the greenback remained weak across the board amid declining yields on benchmark Treasury notes of 10-year and 30-year on Tuesday. The U.S. dollar was also weak amid the rising concerns about inflation that should force Federal Reserve to increase interest rates. Still, Fed has said that it would not do so until improvement in the job sector is visible. The declining U.S. dollar prices also supported the rising prices of XRP and pushed it to its 3-year highest level on Tuesday.
XRP/USD Intraday Technical Levels
Pivot Point: 1.70107
XRP/USD - Technical Outlook
On Thursday, the XRP/USD pair is trading with a bearish bias at a 1.7154 level, heading lower towards the support area of 1.6277 that marks 38.2% Fibonacci retracement. The 38.2% Fibo level violation opens the bearish room until the next support area of 1.6277 (50% Fibo level) and 1.5541 level (61.8%). The MACD and RSI are held at 0.14 and 62, respectively, supporting bullish trends in the XRP/USD pair. On the 4-hour chart, the XRP/USD pair has also formed an upward trendline that's keeping the Ripple at 1.6277 level. Lastly, the Ripple is holding above 20 and 50 periods EMA supporting the upward trend in Ripple. Investors may keep an eye on series of U.S. economic events such as retail sales, core retail sales, and U.S. unemployment claims as these events typically drive sharp volatility in the market. All the best!
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