XRP closed out December 2019 on a low, with the token remaining under $0.196 following its slumps on 16th and 17th December. It failed to breach the $0.20 range for the next two weeks as the world’s third-largest digital asset finished near its year-to-date low. However, a recent hike on 6 January propelled its valuation above $0.223. Alas, corrections over the past two days have seen XRP fall down below $0.205 again.
XRP 1-day chart
Source: XRP/USD on Trading View
The 1-day chart highlighted that XRP successfully registered a bullish breakout after picturing an ascending triangle for a duration of 19 days from 17th December. The price mediated between the trend lines and on the 6 January, the token witnessed a bullish breakout.
However, the breakout was short-lived as the price was trailing towards a slump again, at press time.
The VPVR indicator suggested a range between which XRP was traded the most. Heavy trade volume was identified at a $0.192 price point, followed by substantial trade at the $0.22 mark. Historically, the likelihood of XRP depreciating down back to $0.192 was significantly high, rather than its chances of scaling back to the range of $0.22.
The MACD indicator remained bullish as the signal line hovered under the MACD line, at press time.
1-hour chart
Source: XRP/USD on Trading View
XRP’s 1-hour chart was particularly bullish as well after a falling wedge pattern was identified. A breakout should see the valuation retest the resistance at $0.209 again, but as mentioned previously, historically, that may not happen.
In hindsight, Bitcoin may have a major say over XRP’s price movement in the next few days. Bitcoin registered a substantial hike of 15 percent recently, something that led to positive price movement for XRP as well. At press time, the possibility of another BTC hike was on the cards, something that might trigger another bullish breach of XRP’s apparent falling wedge pattern.
In case of another upwards trajectory, XRP should face strong resistance at $0.209 and $0.216. The VPVR indicator suggested a good amount of trade volume for both the ranges, confirming the strength of the resistance.
Source: Coinmetrics
The correlation index between XRP-BTC has also been on the rise since 15 December. This suggests that any kind of strong movement for Bitcoin’s part would automatically incur a reaction from XRP.
Conclusion
If XRP is able to hold its price above the $0.192 support for a significant period, another Bitcoin surge may see the third-largest crypto-asset surpass $0.21 in the next 48 hours.
