The overall trend for the XRP price is still sideways. The recent correction in price has plunged the coin to a crucial support level of $0.7. However, the technical chart shows the formation of a symmetrical triangle pattern, whose breakout could initiate a new trend in XRP price.
Key technical points:
- The RSI displays bullish divergence in the daily time frame chart
- The intraday trading volume in the XRP coin is $1.74 Billion, indicating a 3.69% hike.
Source- Tradingview
The last time we covered an article on XRP price analysis, the short-term downtrend plunged the price to the $0.7 support. The technical chart showed several lower price rejection candles, indicating the intense buying pressure.
Moreover, the XRP price is also at the support trendline of a symmetrical triangle pattern. Following this pattern, the price could bounce back from this support and rally towards the overhead resistance(approx. $1.1).
Moving in a sideways trend, the longer EMA lines 100 and 200 EMA have started to fatten. However, as for now, the price is trading below these EMAs, indicating a bearish trend.
The daily Relative Strength Index (43) is steadily approaching the neutral line. Moreover, the chart also shows bullish divergence, providing more confirmation for a bullish reversal.
XRP Price Could Retest The $0.7 Support
Source- Tradingview
On January 10th, the Ripple coin price bounced back from the $0.7 support with a morning star candle pattern. The price started to rally and breached the nearest resistance of $0.78. However, the price couldn’t sustain above this level and dropped below the breaking point.
If the price sustains below the $0.78 resistance, the coin might retest the bottom level for another support before it could initiate a proper rally.
The average directional movement index(20) slope moving lower displays the losing momentum in selling pressure. The traditional pivot level indicating the overhead resistance for XRP is $0.776, followed by 0.838. On the flip side, the support levels are $0.688 and $0.62.
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/ripple-price-analysis-resonating-in-symmetrical-triangle-pattern-xrp-price-could-1-1-mark/