Ripple surges as a group likely borrowing tactics from WallStreetBets fuels rally
The price of XRP (Ripple) has exploded nearly 115% over three days, prompting bulls to target a break above critical resistance around $0.60.
At the time of writing, XRP/USD is trading around $0.64, a rebound that returns Ripple’s price to levels last seen when the U.S. SEC filed its lawsuit against the company and its senior executives.
XRP first jumped 56% on Saturday to trade above $0.50 as what appeared to be a coordinated buying effort began to emerge.
A wave of aggressive selling pushed XRP to close the day at $0.44. However, bulls returned with a 12% gain on January 31 to reclaim the $0.50 level. Over the past 24 hours, XRP rose almost 47%, breaking the $0.60 resistance.
What could push XRP to $1?
A Telegram group called Buy & Hold XRP is likely behind this surge, and if so, XRP’s price could climb further. This army of retail traders has probably taken a cue or two from WallStreetBets.
The massive rally could carry XRP/USD past the $0.75 barrier if retail buyers replicate last week’s Dogecoin (DOGE) momentum. Dogecoin surged over 1,000% in 24 hours in a WallStreetBets–style move before cooling off. That meme coin may not be finished either, having rebounded some 45% in the past 24 hours to trade around $0.04.
Technical outlook for XRP/USD
XRP is trading higher after breaking above a descending trend line on the daily chart. A technically significant push toward $1 would gain credibility if bulls can clear resistance at $0.66, as shown in the chart below.
Daily chart of XRP/USD. Source: TradingView
Moving averages, the relative strength index (RSI), and the moving average convergence/divergence (MACD) all signal a bullish short-term bias.
This upside bias could help absorb profit-taking, particularly if XRP/USD clears the 0.786 Fibonacci retracement level at $0.66. Above that level, bulls have legitimate targets at $0.75 and then $1.00.
However, the RSI is in overbought territory, and an extended run increases the chances of sellers emerging. Other market factors and news could also influence price action, so traders should remain attentive to RSI shifts and broader market sentiment.
A short-term correction could be as sharp as the gains seen over the past three days. In that scenario, bears will look to push prices toward the 0.618 Fibonacci level ($0.56) and then the 0.5 retracement level ($0.48).
Any further losses below those Fibonacci levels could see bears target the 50-SMA ($0.33) and the 200-SMA ($0.31).