$0.3500 level offers strong resistance

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Ripple has been advancing on positive fundamental and technical developments, with the cryptocurrency gaining more than 30 per cent since breaking above the $0.2550 resistance level last week.

Ripple analysis shows that that cryptocurrency faces strong technical resistance from the $0.3500 level and may be due for a downside correction before the next major up move takes place.

Ripple medium-term price trend

Ripple has gained close to 90 per cent in value since the start of the year, with the XRP/USD pair now trading well above the $0.3000 level.

Ripple analysis shows that the cryptocurrency faces strong upcoming resistance from the $0.3500 to $0.3800 technical region, and may turn lower before heading higher again. 

Ripple analysis

The latest advance in XRP/USD has helped create a large inverted head-and-shoulders pattern with a substantial upside projection.

At present, the size of the pattern suggests that Ripple could eventually rally through to the $0.5000 level over the medium term.

It is worth noting that the RSI indicator on the daily time frame is showing that the cryptocurrency is at its most overbought level since May 2019.

Should a breakout above the $0.3800 level occur, technical analysis shows that XRP/USD could rally straight through to the $0.5000 level.

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Ripple short-term price trend

Ripple technical analysis over the short term shows that the cryptocurrency has recently performed a major technical breakout after moving above the $0.2550 level.

Bullish fundamental news propelled the cryptocurrency above the $0.2550 level, while the bullish sentiment spreading through the broader market has helped Ripple cement gains above the $0.3000 level.

Ripple analysis

The lower time frames show that bearish MACD price divergence is present until the $0.2800 level, hinting that a downside correction may soon take place.

Key short-term technical support for the XRP/USD pair is currently located around the $0.2800 and $0.2550 levels.

Any pullbacks towards either of these two support areas will likely be seen as a major buying opportunity and a chance for traders to position themselves for the next major rally.

Ripple technical summary

Ripple technical analysis indicates that the cryptocurrency may turn lower from either the $0.3500 or $0.3800 levels. A pullback below the $0.2800 level will likely be seen as a major buying opportunity.

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