XRP, standing on the support line, at a crossroads of direction... "If the support line collapses, a sharp drop"

▲ XRP/AI-generated image

After a period of short-term adjustment, XRP has turned to an upward trend, using key support lines as a foothold, and is compressing energy for an upward breakthrough.

NewsBTC, a virtual asset media outlet, reported on May 22 (local time) through an hourly chart analysis that XRP price recovered the $1.3620 and $1.3650 levels in sequence after confirming a strong support base above $1.350, linked to the flow of Bitcoin and Ethereum. Currently, the virtual asset has entered a short-term upward phase and is continuing a period of consolidation. Market expectations are growing that a full-fledged additional upward rally could be triggered if it decisively breaks above the short-term resistance level of $1.3840.

The most prominent technical feature on the current hourly chart is the formation of a converging triangle pattern with a resistance line near $1.380, based on data from major virtual asset exchange Kraken. The virtual asset price remains below $1.3850, which is the Fibonacci 23.6% retracement line of the downward adjustment range from the high of $1.5495 to the low of $1.3465. Furthermore, trading is currently taking place below the $1.3750 level and the 100-hour simple moving average, showing a somewhat compressed flow in the short term, but this is evaluated as an an energy condensation process to determine the direction of the next breakthrough.

The first hurdle for the future upward scenario is the short-term resistance lines located near $1.3780 and $1.380. If the virtual asset successfully settles with an hourly candle close above the $1.380 level, the price can immediately rise to $1.3840, bringing the next obstacle, the $1.3940 resistance line, into range. If strong buying pressure comes in and cleanly breaks above the $1.3940 resistance line, the price could instantly surge to the $1.420 level, and with additional upward momentum, there is a possibility of going directly to the $1.4480 resistance line, where the Fibonacci 50% retracement line of the high-low drop is located.

Conversely, if the buying pressure falters without overcoming the liquidity wall of the $1.3840 resistance line, the risk of a renewed downtrend cannot be ruled out. If it pushes downwards, the first support line is formed near $1.360, and below that, a strong structural support line holds at around $1.3580. If the downward breakthrough accelerates and a harsh scenario of the closing price ending below the $1.3580 level materializes, the price could retreat to $1.340, and due to cascading selling pressure, it could be exposed to downside risk, adjusting past the $1.3380 area to the $1.3250 level.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*