- XRP price is hovering below a critical supply zone, extending from $1.094 to $1.183.
- The inability of Ripple bulls has led to a sideways movement so far.
- Even a decisive close above $1.183 does not promise a swift upswing.
XRP price is currently trading under multiple barriers that are restricting its moves. A retracement seems likely if the bulls fail to slice through these blockades.
XRP price continues to remain range-bound
XRP price bounced off an inclined trend line on May 23 and has surged 48% to where it currently trades at $0.968. Despite this uptrend, Ripple bulls seem to be facing a problem rallying higher. The supply zone, stretching from $1.094 to $1.183, is the primary point of resistance preventing XRP price from climbing higher. Also worsening the situation is the consolidation, which shows that the buying and selling pressure is almost equal.
Typically, consolidation is followed by an explosion. Therefore, investors must prepare for a sudden movie in the market value of the remittance token that could push it either way.
The logical scenario would be a retest of the support level at $0.84 before shattering the said resistance area with a decisive daily close above $1.182.
If this were to happen, the buyers would target $1.320, which is roughly 36% from the current position of XRP price ($0.968). Following a takeover of this level, Ripple might rise another 24% to test the resistance barrier at $1.612.
XRP/USDT 1-day chart
On the other hand, if the support level at $0.84 fails to hold, XRP price will most likely depreciate 23% to test the demand zone’s upper limit at $0.642. While this does not pose any bearish threats in the long term, it would certainly invalidate the bullish thesis explained above.