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XRP likely to move above $0.265 post channel breakout

Manu Naik

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XRP
Source: Unsplash

Yesterday, XRP revisited values last seen during the drop in value that occurred toward the end of September. Having risen since then, it sported a neat price-tag near $0.25 at the time of writing. According to CoinMarketCap, XRP has a market capitalization of just under $11 billion, and a trading volume of over $1.42 billion in one day. It was traded most on ZBG exchange, which accounted for 9.15% of trades over the 24-hour period.

XRP 1-hour chart

Source: XRPUSD on TradingView

1-hour chart showed that XRP entered a descending channel pattern by the end of the first week of November, oscillating between the two downward sloping parallel trend lines since. These patterns do not exhibit any specific kind of volume trend, though the above chart shows an overall decrease in trading volume over the period.

MACD indicated a bearish movement, as the signal line hovered over MACD line just under the 0 mark. The 50MA also supported the bearish case for XRP‘s short-term, as it appeared to have been applying downward pressure on the price of XRP over the last couple of weeks. However, it should be noted that 50MA can be seen intersecting with the price line, poised to push the price up. So although XRP is expected to continue moving down between the trend lines, a move upward does not seem implausible.

There was also a surge in trade volume toward the end of the chart, consisting mostly of buy-trades. As the XRP value was seen around a high volume node area on the volume profile, it is likely the price will move towards nodes where buy-volumes are higher. Values under its present $0.25 value can be seen as lower volume nodes on the volume profile, with more sell-volume. If this volume trend continues, XRP could move upward to above $0.265, breaking out of the pattern and settling near a higher volume node.

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.