The Ripple(XRP) rally experienced an occasional correction from $0.88 resistance, resulting in an 8.5% decline. However, the coin price rebounded from the upcoming support trendline, bolstering a cup and handle pattern formation. Can buyers breach the $0.88 resistance under the influence of the cup and handle pattern?
Key points:
- The 50-day EMA provides constant support to the XRP price
- The intraday trading volume in the XRP is $2.07 Billion, indicating a 57.6% loss.
Source- Tradingview
The Ripple(XRP) presented a V-shaped recovery as the coin price bounced back from $0.7 support on March 4th. The buyers led a choppy but steady bull run which breached the $0.8 local resistance.
The follow-up breakout bolstered the buyers for another leg-up, which drove the altcoin 10% to its previous swing high of $0.88. On March 28th, the buyers tried to pierce this overhead resistance, accompanied by a significant rise in volume activity.
However, the sellers reverted the price with the same force and thrust a candle closing below the $0.88 mark. The bears tried to follow up on the rejection and pull the price lower, but the flipped support levels of $0.8 restrict them from further decline.
A potential reversal could push the altcoin back to $0.88 resistance and reveal the formation of a cup and handle pattern. A successful breakout would trigger the bullish pattern and encourage further recovery in price.
Alternatively, If the sellers breach and provide closing below the dynamic support trendline, the altcoin would revisit $0.7 support.
Technical Indicator
EMA– The XRP price resonates between the 50-and-200-day EMA. a genuine breakout from either of these EMAs would offer additional confirmation for the next rally.
Vortex Indicator– The coin price gradually rises towards the $0.88 resistance, preventing a bearish crossover among the VI+ and VI– slope. The increasing gap between these lines would emphasize the growing bullish momentum.
- Resistance level: $0.88-$0.90 and $1
- Support levels: $0.8 and $0.7
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/xrp-price-prediction-cup-and-handle-breakout-aims-for-a-15-rally/