Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The value of XRP, at press time, had fallen under the crucial price level of $1 due to the market-wide correction that set in early Friday. After hitting the resistance level of $1.09, the value of XRP began to collapse, with the same on a downtrend, at press time. That being said, despite the altcoin’s value depreciating, the asset could be forming a part of a bullish trend.
XRP daily chart
Source: XRPUSD on TradingView
XRP’s daily chart indicated that its price was forming higher lows within an ascending triangle pattern. The resistance at $1.09 provided the base for the triangle. As the alt’s price hit the sloping line, it moved higher. This could mean that the price might continue to grow within this triangle and could be wound up for a potential breakout.
Reasoning
The market has still not recovered from the fall incurred in mid-May. This general bearishness has kept the price low and the 50 Moving average gliding above the candlesticks was a sign of such restricted price movement. As XRP approaches the end of the rising triangle, there could be a possible breakout. As the 50 moving average slopes lower, the downward pressure may relieve itself.
The Fibonacci retracement tool marked various levels of resistances for XRP’s move upwards. The price has been oscillating around the 38.2% level back and forth and may rise again shortly. The MACD indicator suggested that this northbound move was about to begin as the MACD line crossed over the Signal line. This was a bullish change in trend, one inviting more upwards momentum in the market.
Crucial levels to watch out for
Entry-level: $1.09
Take profit: $1.32
Stop-level: $1.01
Risk and Reward: 2.67
Conclusion
Although the selling pressure remained high at the time of writing, XRP may surge within the ascending triangle. As bullishness rises in the market, there might be a breakout towards the end of the triangle as momentum is built up. The traders might be able to take profit when the value of the asset hits $1.32.
