XRP’s price had been muted in a bearish posture for nearly two weeks. However, it moved above the crucial $0.200-mark; the coin has now exhibited a highly anticipated potential bullish break in the near-term.
Source: XRP/USD on TradingView
XRP’s price candles were observed to be oscillating between a symmetrical triangle pattern, a breakout of which could be on either side.
The placement of the daily moving averages pointed toward a bullish phase for the coin. In the second week of March, triggered by the flash crash, the 50 daily moving average [Pink] and the 200 daily moving average [Purple] formed a death cross. However, the two DMAs have been converging since the beginning of May and the gauge between the two has since declined. In addition, the last 50 DMA slid below the last candle further depicting signs of a bullish breakout after the competition of the pattern.
Source: XRP/USD on TradingView
Relative Strength Index [RSI] was above the 50-median neutral line. This was indicative of a growing buying sentiment among the investors.
Case 1:
In case of a bullish breakout, as supported by the daily moving averages as well as the indicator, XRP could climb all the way to $0.245, a level unseen since the first week of March. If the upward momentum persists, the coin could also target subsequent resistance points at $0.284 and $0.310 respectively.
Case 2:
A reversal of this trend is highly bleak, as its support remained firm at $0.182 and $0.139.
Correlation:
Source: Coin Metrics
The price of the third-largest cryptocurrency, XRP has always been swayed by that of Bitcoin. Currently, according to Coin Metrics,’ the BTC-XRP correlation coefficient stood at 0.817, meaning if Bitcoin undergoes another upsurge, this might be another boost for XRP’s price action to breach significant target points.
Conclusion:
A potential upward breach was depicted by the above charts which could drive coin to breach its immediate target points at $0.245, $0.284, and $0.310 as the coin was supported at points, $0.182, and $0.139.
