Bullish Pattern Emerged In XRP Weekly Price Chart; Should You Buy?

Over the past three months, the weekly technical chart shows two swing lows bounced back from the $0.315 support. In addition, the W-shaped formation in the chart reveals the shape of a double bottom pattern. This bullish reversal pattern is pretty standard at the market bottom, bolstering a significant recovery after proper execution. Will XRP price hit $0.48 mark?

Key points: 

• A bullish-RSI divergence shows a higher possibility for price recovery.
• The 20 EMA resistance in the weekly chart could encourage the failure of a bullish pattern.
• The intraday trading volume in the XRP is $3.9 Billion, indicating a 41% gain.

Source- Tradingview

The two bullish reversals from the $0.135 support indicate the traders are actively buying at the level. As a result, the XRP price rallied 33% over the fortnight and marked a high of $0.421.

On September 20th, this bull run gave a massive breakout from the $0.39 neckline resistance. Thus, surpassing a resistance level after the support reversal provides additional confirmation for a future rally.

Earlier today, the XRP price chart showed a 5% intraday loss and retested the $0.39 level as potential support. However, by the pressure, the buyers have recovered some losses and displayed a lower price rejection candle.

This low-wick rejection candle shows sustainability above the $0.39 support, providing an entry opportunity to interested buyers. With sustained buying, the XRP price could rally 20% higher to $0.48 resistance.

On a contrary note, if the buyers cannot sustain above the $0.39 level, closing below will extend a sideways rally above $0.315.

Technical Indicator

EMAs: Along with neckline breakout, the XRP price reclaimed the 100-day EMA slope. Moreover, the coin chart reflects a buy signal with the bullish crossover between the 20-and-50-day EMA.

Relative Strength Index: The daily RSI slope shows a significant bullish divergence for the two swing lows within the price pattern. This divergence supports the completion of the bullish pattern and recovery theory.

XRP price intraday level

• Spot rate: $0.40
• Trend: Bearish
• Volatility: Medium
• Resistance levels: $0.425 and $0.45
• Support levels: $0.39 and $0.31