XRP's Attempt to Break Free from Long-term Pattern
Date: 2024-01-20 Author: Dima Zakharov Categories: BLOCKCHAIN
XRP Holds Steady Above Long-term Support
XRP has managed to maintain its position above a significant long-term horizontal support area, which it had previously converted into a reliable support zone. Within the price chart, an intriguing descending triangle pattern has taken shape.
Approaching the Triangle Boundary
Since the beginning of 2023, the price of XRP had been steadily rising along an ascending support line, culminating in a new yearly high of $0.95 reached in July. This upward movement also led to a breakthrough of a long-standing horizontal resistance area that had persisted since September 2022.
However, XRP has since traced a descending path along the resistance line, with its price bouncing off it repeatedly (indicated by red markers). The combination of these trendlines has formed a symmetrical triangle pattern, considered a neutral formation. Ripple is swiftly approaching the boundary of this pattern and is poised to break out in either direction.
Source: TradingView
Weekly Relative Strength Index (RSI) offers little guidance regarding the trend's direction. The indicator is positioned at a neutral level of 50, signaling an undecided trend.
XRP's Future: When Will the Rebound Begin?
The daily timeframe paints a bearish picture as the asset's price moves within a short-term symmetrical triangle pattern present on the chart since November 2023. It is currently testing support at the $0.55 level.
The daily RSI is declining and is below the 50-mark. Although the indicator may potentially form a bullish divergence, it has not been confirmed yet.
Should the token close below the $0.55 support level, it could drop by 15% to the next nearest support level at $0.46. However, cryptocurrency analyst Ben Armstrong remains optimistic, suggesting that XRP's price surge is imminent and stating, "Call me crazy, but I believe $XRP will start rising by the end of Monday."
Source: TradingView
Despite the bearish outlook, a rebound in Ripple to around $0.55 could trigger a 10% bounce towards the descending resistance line at the $0.60 level.
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