The bounce-back move happened near a key support confluence, raising the prospect of a 30% increase in XRP in Q2/2022.
Ripple (XRP) began May with a reasonable price recovery after plummeting 28 percent in April, its worst monthly performance since June 2021. Furthermore, the XRP/USD pair appears to be on track to continue its upward trajectory in the coming weeks.
The convergence of support increases XRP’s bullish possibilities
In the first two days of May, the price of XRP increased by approximately 6.25 percent, reaching a high of $0.63 (R10,11). (data from Binance). The buying sentiment increased at $0.58 (R8,51), a level that served as strong support in January 2022, allowing XRP to rise by more than 50% thereafter.
Interestingly, the $0.58 (R8.51) support level corresponds to XRP’s 200-week exponential moving average (200-week EMA; the blue wave in the chart below).
It also acts as the lower trendline of a broader descending triangle pattern, which is a bearish indicator with a target of $0.18 (R2,89) in the coming months.
However, with the price of XRP bouncing from a confluence of support levels, the possibility of retesting the triangle’s upper trendline is high. As a result, the token would test levels above $0.75( R12,04) — up nearly 30% from today’s price — as its next resistance objective in Q2/2022.
Purchase the rumour
XRP has emerged as a speculative vehicle for traders hoping to profit from the current SEC vs. Ripple litigation.
The Securities and Exchange Commission (SEC) of the United States filed a lawsuit against Ripple in December 2020 for conducting illegal securities sales using XRP. Nonetheless, recent hearings show that Ripple’s case is proceeding rather smoothly.