Ripple received some very good news from yesterday’s announcement by the Commonwealth Bank of Australia, but the technicals are still very much in play on the charts. The Ripple market has been trending higher since the 19th of May, and some very important technical levels were broken in the process. If we look at the 4-hour chart from the beginning of April and through to the end of May, we can see how frequently the 0.000031 price level was used as support and resistance. This level was respected by the market in excess of five times. The market gathered enough momentum to break through 0.000031 on the 28th of May. If the market trades back down to 0.000031, I think it is highly likely for this price pivot to act as support now.
There is also another minor pivot level, which I think bears a mention in this analysis. When the market spiked rapidly upward on the 19th of May, the high of the 4-hour candle hit a high of 0.000034. So, 0.000034 was respected as a resistance level by the market, and now it could provide some support. This area is nowhere near as strong or established as 0.000031, but this price area does have some weight from a purely technical perspective. I have also marked the trendline that has developed since the market started trending. Trendlines can also be used as potential entry points for opening positions with the prevailing market sentiment, so keep an eye on it.
The most recent rally topped-out at exactly 0.000041, and for good reason! If we look at the 4-hour chart and examine market behavior towards the middle of March, we can see that the 0.000041 level was used as resistance on two separate occasions, and the market had not revisited this level since then. The 0.00041 level has now turned into a very strong triple-resistance zone, and should definitely be marked on your charts!
Chart source: https://poloniex.com/exchange#btc_xrp