Ripple (XRP) price holds the best cards regarding trade management. With a firm drop toward $0.3710, price action bounced back above the 55-day Simple Moving Average (SMA) and the monthly pivot. Traders who want to be bullish can easily enter and place their stops just below either of the above levels.

XRP needs to be labeled with a warning as the geopolitical tension flares up. The EU summit in Brussels on Friday could elevate risk if the go-ahead for delivering fighter jets to Ukraine is given. Expect more downward pressure toward $0.3710. Once broken, unfortunately, the whole rally of January becomes exposed as $0.3043, the first major support area to look for.

As mentioned in the above paragraph, a rally could be granted purely on the back of technical forces. With two key support levels already being salvaged after the nosedive move from Thursday, more recovery could be granted. Expect a push higher toward $0.4228 that fully erases the incurred losses from Thursday if that is the case. 

XRPUSD is showing nice and clean bullish setup formation in the 4-hour chart that can send the price higher, at least up to 0.50 resistance area for wave (C) or maybe even higher within wave (3).

After an impulsive five-wave rally from the lows into first leg (A)/(1), it's actually now in a slow A-B-C corrective pullback within wave (B)/(2) that can find the support here around 0.37 - 0.35 area and from where we should be aware of a continuation higher, especially if the price jumps back above 0.41 region. Invalidation level is at 0.30.

Ripple seems like stepping out of correction soon

Feb 12 2023

1