XRP’s performance has been bearish for most of 2019, and the bears are not ready to quit yet. The coin registered a devaluation of 6.40% on September 6 and the lowest bid was marked at $0.2461, close to its support at $0.2419. The coin has put in a solid effort to recover from the fall, but recovery has been maintained within the $0.25 range.
The short-term charts of the coin have been suggesting some probable growth, but this could just be a revival effort.
Source: Trading view
XRP’s 1-hour chart indicated the formation of an ascending triangle pattern. The slope linked swing lows are at $0.2488, $0.2501, and $0.2504, while the horizontal line connected a series of swing highs at $0.2528. Considered a bullish pattern, the ascending triangle could lead to a rise in the price of the contentious coin.
The 50 moving average rested under the 100 moving average after a crossover on September 6, a sign of the declining market. On September 1, the XRP market was taken over by a bullish trend as the 50 moving average sprinted
The MACD indicator reasserted the bearish trend prevalent in the market. However, the MACD line has been teasing overtaking the signal line, inversing the trend to a bullish one.
Source: Trading view
XRP’s 4-hour chart also indicates some relief for the coin, with the formation of a descending channel. The channel is defined by connecting the lowers highs at $0.2686, $0.2655, and $0.2610 and the lower lows at $0.2570, $0.2552, $0.2527 and $0.2488. The descending channel may result in a slight rise in the coin’s price.
The 50 moving average was over the 100 moving average on September 3, but underwent a bearish crossover on September 6. XRP’s price took a hit by 3.99% within these three days, but with the 50 moving average hovering above the 100, another rise in XRP price is expected.
The MACD indicator highlighted strong bearish momentum in the market. Thus, even if the coin breaks out of the descending channel, the rise could be meagre one.
The price of XRP might be pushed up with the breach of the ascending triangle and descending channel pattern.
Ripple Price Update: XRP/USD reclaims $0.24 support while the focus shifts to $0.30
- Ripple’s short-lived recovery brushes shoulders with $0.25 and upholds the support at $0.24.
- The spotted rising wedge pattern signals a near future reversal towards $0.20.
Ripple is back in the green after correcting a higher 2% on Sunday. The weekend session started on a bearish note, where the majority of cryptocurrencies trimmed a fraction of the gains made on Friday. However, the situation is different on Sunday with most of the digital assets pushing for recovery.
The third-largest cryptocurrency on the opened the session at $0.2428 and adjusted northwards to $0.2514. The bull
Technically, Ripple is ready for more action, targeting $0.30. The Relative Strength Index recovery from average levels around 50 to brushing shoulders with the overbought (70) displays a bullish picture for Ripple. If the upward motion continues above $70, it will encourage the buyers to increase the entries in the market and force gains towards $0.30.
Longer-term analysis shows that Ripple is not safe from losses or a devastating reversal. Especially with the rising wedge pattern information. For starters, the bulls must try to defend the immediate support at $0.24. Moreover, they must guard the pattern support trendline at all costs because a break beneath could encourage the bears to increase their entries, which could further push Ripple in the direction of $0.22.
XRP may briefly undergo correction or test resistance levels at $0.236
After dropping close to 45 percent in terms of valuation from 7th November to 18th December, XRP has started 2020 on a positive note.
Since January 1st, XRP has registered a price hike of up to 28.19 percent, breaching key resistance at $0.0225, and currently, XRP consolidated above the key level. Over the past 24 hours, XRP underwent a 3.63 percent surge, and at press time, the valuation stood at $0.235 with a market capitalization of $18.65 billion.
XRP/USD on Trading View
The 1-hour chart of XRP pictured the formation of a symmetrical triangle. The pattern started taking shape since the collective market surge of 14th January, and at press time the price was abiding by the trend lines.
A symmetrical triangle evens out the chances of both a bullish and bearish breakout in the future. The trading volume has been decreasing in the same time frame, which should witness a spike once a breakout takes place.
In case of a bullish breakout, the price is expected to climb back toward the resistance at $0.236 as the
On the other hand, a bearish breakout would see the price drop below between the range of $0.231 and $0.225, but the support level at $0.225 should withstand the bearish pressure.
XRP/USD on Trading View
Other indicators suggested that a case for a bearish break was stronger than a bullish one at the moment. Relative Strength Index appeared to decline at press time, hinting at a bearish scenario. MACD indicator exhibited a similar outlook with MACD line approaching a trend reversal with the signal line.
However, depreciation in terms of volatility may indicate that the breakout would not be extensive but a minor correction from the current market’s perspective. Although, it is important to note that volatility is subject to changes in the market, while not dictating the market trend itself.
Over the next 24-48 hour time frame, XRP may slightly rise again to test the resistance at $0.236 or depreciate under $0.230, as price corrections may take over.
XRP could breach below channel to $0.20 before February
XRP increased in value from $0.184 to $0.245 in the days between 2nd and 12th of January, marking a whopping ~33% increase in value over less than two weeks. The coin dropped in value since then, to around $0.22 at the time of writing, and could dip further down in the weeks to come. CoinMarketCap data showed XRP currently has a market capitalization of over $9.8 billion, with nearly $2.3 billion worth of XRP traded in the last 24 hours.
XRP 4-hour chart
Source: XRPUSD on TradingView
The 4-hour chart showed XRP in an ascending channel formation, which it looked to have entered early on in the month. The volume could be seen spiking as the price approached the trend lines; however, the price’s failure to move all the way to the upper trend line after the third touch could suggest a weakness in the pattern and might indicate a more bearish market sentiment.
The 50-moving average was seen creeping up along the pattern’s lower trend line, well under the price candles, which is usually a bullish signal. However, the Relative Strength Index (RSI) indicator displayed a
In this scenario, XRP will likely move into the region between the support at $0.22, and the 23.6% Fibonacci retracement line at $0.227 in preparation for a downward-facing breakout.
Source: XRPUSD on TradingView
The On-Balance Volume indicator, a running total of an asset’s trading volume, looked to be dropping since January 14, and could be retracing its movement from just a week prior. The reducing trade volume could mean some sideways movement for XRP until it moves into the breakout region.
From there, XRP is likely to break down to at least the 0% Fibonacci retracement line at $0.20 before the month is up, and could possibly dip further down to the $0.183 support in the weeks following.
XRP is likely to experience some sideways movement on the 4-hour chart until it enters the breakout region between $0.22 and $0.227. From here, XRP will probably break downward and could drop to at least $0.20 before February arrives.