On Monday, the Ripple (XRP) price action displayed highly volatile, resting both the resistance and support trendline before settling with a Doji candle. However, the altcoin approaching the pattern’s apex would soon provide a directional rally to traders.
Key points:
- The XRP buyers face strong resistance from the 50-day EMA
- The intraday trading volume in the XRP is $2.4 Billion, indicating a 2.48% loss.
Source-Tradingview
The Ripple(XRP) price has been declining steadily under the influence of a descending trendline. So far, the altcoin has lost 20% from its previous swing high of $0.911 and continues to face dynamic resistance from this trendline.
However, an upcoming support trendline has prevented the XRP price from any drastic fall, resulting in the formation of a symmetrical triangle pattern. This range-bound rally is nearing the apex of the triangle pattern, indicating the coin is poised to give a breakout.
A breakout from either side of this continuation pattern would end this sluggish decline and give a clear direction to the rally. Therefore if buyers pierced the overhead shared resistance of trendline and the 50-day EMA, the traders would drive the altcoin by 25%, hitting the $0.9 mark.
Contrary to the bullish thesis, a bearish breakout from the ascending trendline would accelerate the ongoing sell-off and open the gates for the $0.6 mark.
Currently, the XRP price trades at $0.8, indicating a 1.5% intraday gain. Anyhow the traders looking for new entry should avoid the tug of war within the converging trendline and wait for a genuine breakout to grab their entry opportunity.
Technical Indicator
The flattish crucial EMAs(20, 50, 100, and 200) accentuate the range-bound movement in price action. The coin price trading below these EMAs gives the sellers a significant advantage.
The MACD indicator lines wavering around the neutral zone indicate a neutral tendency.
- Resistance level: $0.85 and $1
- Support levels: $0.745 and $0.59
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-analysis-xrp-traders-face-a-do-or-die-outcome-as-price-narrows-within-the-triangle-pattern/