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XRP lacks momentum to keep stride as ascending channel closes

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XRP's price likely to undergo another dip as ascending channel pattern closes

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XRP’s price was predicted to have gained the necessary momentum after the coin breaching a major psychological level at $0.30. However, it failed to retain its uptrend, declining shortly after and was bounded within the range of $0.26-$0.29.

The short-term chart for XRP predicted a further slump in the near-term. According to data from CoinMarketCap, XRP was trading at $0.28 after sustaining a decline by 2.55% over the past 24 hours and registered a market cap of $12.55 billion, at press time.

Ascending Channel Pattern formation

Source: XRP/USD on TradingView

XRP’s short term chart shows a bearish dominance in the coin’s future. The 4-hour XRP chart indicated formation of ascending channel pattern which is a signal that the coin could potentially sustain another bearish breakout, leading the price to breach untested support levels. At press time, the coin was down by 0.29% in the last one hour; this could be indicative of a further price decline for XRP.

Further indicating a potential bearish phase for the coin in the near-term was the moving averages. Following a brief bullish period, the moving averages were back in the bear’s realm. 100 moving average fell below 200 moving average on 15th October and with the two diverging ways. XRP’s much-needed breakout to the positive side may take longer.

A breakout to the upside was unlikely, with resistance point steadfastly standing at the recently breached $30. Followed by another major resistance level seen at $0.34, untested since July 2019.

If the trend persists and the coin’s price undergoes another dip, support could be tested at $0.26, and could subsequently fall below 200 moving average to another support point at $0.23.

Bears rise to prominence

Source: XRP/USD on TradingView

In line with the above indicators and moving average lines projecting strong sluggish signals for the coin, MACD indicator also sided with less optimistic views for XRP as MACD line was below the signal line.

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