Bitcoin’s 200DMA breach could push XRP to 2396 sats ($0.22) in February
XRP has been moving down in terms of its value in Bitcoin for the last four to five months. The coin fell by around 10% on January 7 from 2895 sats to around 2600 sats, after XRP had seen a ~14.3% rise the day before. While the fall in value was more determined by Bitcoin‘s 6.9% rise on the same day, BTC’s expected bullish movements over the coming weeks could have a pleasant surprise in store for XRP.
XRP BTC 1-day chart
The daily chart for XRP against Bitcoin showed the coin moving through a falling wedge formation. Patterns like these breakout upward 68% of the time, though we might not see upward price movement for some time yet. The 50-day moving average was moving above the price line, which could mean some devaluation in the short-term. However, XRP is likely to face resistance around the 2396 sats level, at the pattern’s lower boundary.
The EMA ribbon was also moving above the price candles, and looked to be making a convergence move — a mean reversion — which supports the idea of a bearish short-term move. MACD also indicated further incoming downward movement, maintaining the bearish crossover which took place a few days ago.
XRP looks like it will bounce upward from the lower pattern boundary at 2396 sats, before moving up to the breakout point at 2509 sats by the end of February. From here, an upward breakout seems plausible and could push XRP up to the 61.8% Fibonacci retracement line at 3000 sats before March.
BTC USD 1-day chart
Right off the bat, it’s clear Bitcoin against USD looks far more bullish than the chart above. The 50-day moving average was moving under the price candles, with MACD also presenting a bullish crossover. This, along with BTC’s push above the 200-DMA, and its breakout from the nearly 5-month long channel, construct a strong signal of bullish movement to come in the medium term. This further validates the idea that XRP will move down for some time.
With such a bullish outlook for Bitcoin in the short to medium-turn, XRP will likely drop in value to 2396 sats at the lower pattern boundary by the first week of February. However, a bounce to the breakout point seems likely by the end of the month, followed by a breakout to 3000 sats before March arrives.