Since November, the price of Ripple (XRP) versus the US dollar (USD) has rallied more than 450%. It is safe to say that the trend in XRP/USD is to the upside for the time being and traders will likely bid any corrections, particularly from support.

You will see that from the end of November, price has actually been using the space between the Ichimoku’s Conversion (blue at US$2.555) and Base (red at US$2.245) lines as a support area to rebound from.

Active Channel Support

Also worth highlighting is the two ascending channels. One remains active (taken from US$1.880 and US$2.501), with price testing the lower boundary of its support. However, should price push through this limit, this could draw the pair to retest a breached channel resistance-turned-potential support, extended from the high of US$1.950, which happens to lie within the area between the Ichimoku Conversion and Base lines.

Price Direction?

Technically, things are set up for a continuation to the upside, either from current channel support or the breached channel resistance-turned-potential support that currently rests within the Ichimoku Conversion/Baseline support area.

DISCLAIMER

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.