XRP price eyes breakout to $0.75 as it concludes consolidating in a falling wedge pattern. Increased risk appetite could blast the token to $1 in January.
Published 8 hours ago
Amidst the excitement surrounding the spot Bitcoin exchange-traded funds (ETFs) in the US, concerns are spreading like wildfire about whether cryptos will dump with investors selling the news or pump backed by the benefits likely to emanate from this historical development. XRP price wobbles alongside its peers, down 0.3% in the last 24 hours to trade at $0.56. Ethereum is in a similar predicament after sliding by 0.6% to $2,271.
Intriguingly, Bitcoin price has taken center stage, increasing by 4% to $46,758. This bullish outlook coupled with the imminent approval of the ETF by the Securities and Exchange Commission (SEC) could keep bears at bay while encouraging investors to seek more exposure not only to BTC but also to altcoins like XRP.
XRP Price Prediction: Incoming Falling Wedge Breakout Targets $0.75
A falling wedge pattern is nearing a possible breakout after forming since early November in the wake of the spike to $0.75.
XRP price sustained a commendable uptrend from mid-October but due to profit-taking and general market sentiment in November and December, bulls scaled back, leaving the course open for bears to reign supreme.
A brief rebound on Monday elevated the cross-border money remittance token above the 200-day Exponential Moving Average (EMA) (in purple) where it hit a weekly high of $0.58 before sliding to retest the wedge support at $0.55.
Traders could be waiting for key signals that a trend reversal to $1 would be sustainable. This could start with a buy signal from the Moving Average Convergence Divergence (MACD) indicator, manifesting with the blue MACD line flipping above the red signal line.
Recommended for you: Ethereum Price Rally Hiatus Eyes Fresh Liquidity With Spot BTC ETF Approaching
The odds will further support the bullish theory as XRP price lifts above the 200-day EMA. As the tailwind increases, the path with the least resistance would shift upwards and allow bulls to push for a falling wedge pattern breakout.
A falling wedge is a bullish pattern, which marks a consolidation period after a massive move-up. The pattern is validated when the asset breaks above the upper trendline accompanied by increasing trading volume to back the breakout.
Traders are looking to enter above the breakout level, aiming for a 20% leg higher in XRP. This would push the price beyond $0.75, establishing a key support level and potentially triggering a bullish continuation towards $1.
Nevertheless, the recently formed death cross pattern after the 20-day EMA (in blue) moved below the 50-day EMA (in red), elucidates that XRP is still in danger of dropping to test lower support areas such as $0.5 and $0.45. That said, traders should tread cautiously to avoid sudden bull traps, especially spot BTC ETF approval week.
Related Articles
Share this article on:
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.
Source: https://coingape.com/markets/xrp-price-could-pump-20-on-solid-technical-structure-and-spot-btc-etf-nod/