Quick take:
- XRP has once again managed to regain $0.20 as support.
- XRP maintaining a value above this level will provide the required confidence for the remittance coin to keep climbing in the markets.
Earlier this week, we saw Bitcoin retest the $10,000 psychological level for the third time since the Coronavirus crash of mid-March 2020. As a result, traders and BTC analysts have identified it as a potential triple top that might lead to Bitcoin losing value in the next few days and weeks. Such a drop might imply that Bitcoin’s dominance in the crypto markets will keep reducing this providing the much-needed breathing space for XRP to once again thrive in the crypto markets.
XRP’s Support at $0.20 is Still the Price Level to Watch in June
In an earlier analysis, BTC dominance was fading and at a level of 67%. Checking the Bitcoin’s dominance chart once again, the value has dropped to 65.97% at the time of writing this. This in turn means that once again, XRP’s support at $0.20 is the price level to watch as we walk into the new month of June.
To note is that XRP still in the falling wedge identified by the popular crypto analyst, MagicPoopCannon. In his analysis, Magic postulated that XRP had the potential of reaching a value of $0.77 if the wedge broke to the upside. Further recreating the XRP wedge identified by Magic, we get the following chart.
Additionally, and from the XRP/USD daily chart, we observe the following.
- XRP’s current price at $0.203 is above the 50-day and 100-day moving averages that offer some support for the remittance coin.
- However, its price is still below the 200-day moving average that is acting as a short term resistance.
- XRP’s short term support lies between $0.18 and $0.17.
- Additional major support can be found at $0.11.
- XRP is still very much in a falling wedge that could resolve between now and the end of 2020.
Conclusion
In summary, XRP has regained the $0.20 support zone and is still in the falling wedge MagicPoopCannon identified in mid-May. XRP’s price needs to maintain a value above $0.20 to inspire enough confidence from traders and investors to initiate a push up above the wedge.
However, as with all technical analysis of altcoins such as XRP, any violent move by Bitcoin to the downside will have a negative effect on the remittance coin. Therefore, keeping an eye out for Bitcoin is advisable and placing adequate stop losses to protect trading capital.