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Analysis

XRP could breach ascending channel up to $0.37 next week

Manu Naik

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XRP

2019 saw XRP’s yearly low touch $0.22. Since then, the cryptocurrency has been slowly, yet steadily, making a comeback. At the time of writing, XRP was valued at around $0.293, with a market cap of over $12.7 billion and a daily trading volume of nearly $1.51 billion. XRP was also traded most on the BiKi exchange, which accounted for 6.63% of trade volume. 

XRP

Source: XRPUSD on TradingView

The XRP 4-hour chart shows that the price entered an ascending channel pattern toward the end of last month, soon after the price had dropped on the 24th. Since then, the price has been moving between the two ascending channel trend lines, moving up and breaching through resistances. With ascending channels, and channels in general, there is no hard and fast rule regarding which way the breakout will occur. Volume indicator appears to be generally trending downward.

MACD showed that a bullish crossover could be imminent, as the signal line and MACD line both sit just beneath the 0 mark. EMA Ribbon lines also look to be making a bullish move under the price chart, as the lines prepare to diverge soon.

If the price line cuts above the EMA Ribbons, the price is likely to continue up, through the $0.307 and $0.327 resistances and break out of the pattern, up to possibly $0.37. If the price moves down, below the EMA Ribbons, the price is likely to fall out of the pattern, possibly down to $0.23.

Since MACD showed that a bullish move is more likely, the XRP price will probably move up instead of down, breaking out of the pattern by sometime next week. 

Manu is a full-time journalist at AMBCrypto covering the US and Indian markets. A graduate in engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.