XRP may briefly undergo correction or test resistance levels at $0.236
After dropping close to 45 percent in terms of valuation from 7th November to 18th December, XRP has started 2020 on a positive note.
Since January 1st, XRP has registered a price hike of up to 28.19 percent, breaching key resistance at $0.0225, and currently, XRP consolidated above the key level. Over the past 24 hours, XRP underwent a 3.63 percent surge, and at press time, the valuation stood at $0.235 with a market capitalization of $18.65 billion.
The 1-hour chart of XRP pictured the formation of a symmetrical triangle. The pattern started taking shape since the collective market surge of 14th January, and at press time the price was abiding by the trend lines.
A symmetrical triangle evens out the chances of both a bullish and bearish breakout in the future. The trading volume has been decreasing in the same time frame, which should witness a spike once a breakout takes place.
In case of a bullish breakout, the price is expected to climb back toward the resistance at $0.236 as the bullish zone is between the $0.231 and $0.236. VPVR indicator suggested that the trading volume is significant in this range. The price is currently under the 100-Moving Average which is a strong bullish signal.
On the other hand, a bearish breakout would see the price drop below between the range of $0.231 and $0.225, but the support level at $0.225 should withstand the bearish pressure.
Other indicators suggested that a case for a bearish break was stronger than a bullish one at the moment. Relative Strength Index appeared to decline at press time, hinting at a bearish scenario. MACD indicator exhibited a similar outlook with MACD line approaching a trend reversal with the signal line.
However, depreciation in terms of volatility may indicate that the breakout would not be extensive but a minor correction from the current market’s perspective. Although, it is important to note that volatility is subject to changes in the market, while not dictating the market trend itself.
Over the next 24-48 hour time frame, XRP may slightly rise again to test the resistance at $0.236 or depreciate under $0.230, as price corrections may take over.