Stay above keeps the bulls in control
Of course the price of ripple did move down from a 2018 high of $3.317 to a low of $0.2451. So there are plenty of traders who have come and gone.
Nevertheless, there is nothing like visions of even the February high at $1.2296. Percentage wise, that is still a great return.
Of course visions may not be the reality, but in the high flying digital world, it is often the momentum and today is a momentum day.
Technically, today also turned the picture to more bullish. More specifically, the price moved back above the 200 day MA at $0.5430.
Why is that so important?
If you look back in time, the 200 day MA has been a real good barometer for bulls and bears (see green arrows). The chart above shows times when the price tested the MA level, and saw a reactionary move.
Back in December 2017, the price based against the 200 day MA before ROARING higher.
In February 2018, the price came tumbling down and bounced off the MA line. Key bounce,and key indicator that traders are paying attention to the MA line.
In March and April and May, the price action moved above and below the MA line, but the market did use the line as a risk defining (and bias defining) level. When I moving average is used by traders the way it has for ripple, it gives traders the tool to define and limit risk and also define bullish and bearish bias. Traders use the line to lean against.
The price has not really "sniffed" the line until today, and the "sniff" today was just in passing through the line. That is bullish.
It also helps traders define risk. If you are long the XRPUSD, your risk is that line. Stay above, and let the good times roll. Move below, and go back into ripple hibernation (get out).
Looking at the hourly chart below, the low from the high today has reached down to 0.5769 on two occasions. Are buyers leaning against the 200 day MA at 0.5430 area? I gotta think so.
Look for buyers to stick there toe in the water ahead of that level. After all, ripple ripped higher and switched the technical bias around. If the run higher is a fraction of what happened in 2018, there is a long way to go.