- XRP price shows a solid bullish bias that has led to a 25% spike over the last 24 hours.
- Ripple retraces 7% as bulls take a breather after facing rejection at $1.76.
- A 20% upswing will push the remittance token to new yearly highs at $2.
XRP price shows a massive spike in buying pressure that has pushed it up by nearly 70% since the weekend crash on April 25.
XRP price breezes through resistance levels
On the 4-hour chart, XRP price is trading around the 161.8% Fibonacci extension level at $1.65 after retracing nearly 7%. This pullback results from bulls taking a break after a 15% rally in under a day.
This respite will help the buyers come back stronger and push through to the next resistance level at $1.88, 15% away from the current position. If the investors pile up their bid orders, XRP price could see it hit new yearly highs of $2.
However, market participants should note that the 2018 demand zone ranging from $1.79 to $2.14 will test bulls’ caliber. A decisive 4-hour candlestick above $2.14 will signal the start of a new uptrend that could hold the potential to tag Ripple’s all-time high at $3.31 with a pitstop at $2.75.
XRP/USD 4-hour chart
While the upswing scenario seems like a logical path that XRP price will take, a failure to push through the demand barrier will cause the remittance token to consolidate in this zone or below it.
This move could negatively impact the buyers and further invoke a sell-off.
A breakdown of the $1.51 support barrier will invalidate the bullish thesis and kick-start a downswing to the 50% Fibonacci retracement level at $1.31.