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Disclaimer: The results of the following article are the sole opinion of the writer and should not be taken as investment advice
In a development that has been well received by many of its backers, XRP’s price has risen substantially on the charts in the past few days. However, with the price action of most altcoins dictated by Bitcoin’s fortunes, the breakout of XRP was more or less expected. Interestingly, while the cryptocurrency’s price has been confined within a symmetrical triangle over the course of the week, in the past 24 hours, it has exploded and established an uptrend.
As of press time, XRP was trading at $ 0.272, with the cryptocurrency having a market cap of $ 11.6 billion and a 24-hour trading volume of $ 2.6 billion.
XRP 4-hour chart
Source: XRP / USD, TradingView
According to XRP’s 4-hour chart, the coin, after being stuck in a symmetrical triangular formation since November 7, has finally exploded northward. The coin’s press time trading price was close to repeating its last resistance at $ 0.278. While the past 24 hours have shown significant bullish sentiment, a correction appears likely to occur on the charts. In such a scenario, a drop to the immediate support at $ 0.265 seemed entirely possible.
Reasoning
XRP’s technical indicators have not ruled out the possibility of an imminent price correction for XRP. As the coin was having a hard time beating its immediate resistance, it may fall to its support at $ 0.265 in the short term. The RSI, despite being in the overbought zone, was moving in the opposite direction.
The last time the RSI was at a similar level in the overbought zone (Nov 7), a sharp drop brought it back to the neutral zone. This trend change is likely to happen this time too. The EMA tapes, however, have continued to float on the support line and are likely to offer support if the cryptocurrency reaches that price level.
Important levels
Resistance: $ 0.278
Support: $ 0.265, $ 0.253, $ 0.249
Entry: $ 0.276
Take Profit: $ 0.266
Stop Loss: $ 0.277
Conclusion
The price of XRP has benefited significantly over the past week. While the symmetrical triangle can force a breakout in either direction, XRP’s northward breakout saw its price rise by nearly 9%. However, the next 24-48 hours could see a price correction and the immediate support level could be its target.
