Disclaimer: The results of the following analysis are the sole opinion of the author and should not be construed as investment advice
XRP has seen strong gains in the past few days, with the Alt jumping from $ 0.58 to $ 1.11 on the charts before some of those gains were tracked. At the time of writing, XRP held onto strong support at $ 0.925 and formed a triangle pattern. However, the direction of the next step had not yet been confirmed, although it was expected to be up.
XRP 1 hour chart
A symmetrical triangle (white) was discovered in the diagrams. This pattern can cause price to break the trend lines in either direction. However, this pattern appeared to be a continuation pattern. Therefore, the price would follow the direction of the previous trend, in this case up.
The Fibonacci retracement levels recorded based on the rise in XRP from $ 0.56 to $ 1.11 highlighted some support levels and the 23.6% and 38.2% retracement levels at 0 , $ 95 and $ 0.86 had been attended by the award.
The technical indicators were somewhat overstretched prior to the corrections and seemed to indicate that momentum was shifting again in favor of the bulls.
There was a bearish divergence (orange) on the RSI prior to falling to USD 0.86. In the trading sessions that followed, bullish twin peaks formed on the Awesome Oscillator. This was a buy signal and the AO also crossed the zero line.
However, XRP had not yet broken out of the triangle pattern. A dip into the $ 0.88-0.9 region is seen to look for stop-loss orders before a breakout breaks above $ 0.95.
There was also a slim chance that XRP will continue to trade sideways in the coming days. Unlikely but possible, and this consolidation would be an opportunity to increase spot positions on the asset.
In the next 24-48 hours, XRP could take a strong step north. The $ 0.925 level is a strong support level and demand should also jump in in the $ 0.88-0.9 region. If XRP falls below the $ 0.86 mark in the coming days, it should head towards $ 0.79. Another breakout after $ 1 will likely retest $ 1.1.
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