Analysis
XRP nears $0.30 resistance as ascending channel pattern takes shape
Posted:
| Last updated: November 24th, 2023
XRP briefly breached the psychological $0.30 mark on October 17th, a level unseen since the coin fell sharply after September. Could this be the long-awaited revival for the XRP bulls?
Ripple’s native crypto stood at a value of $0.297 and registered a market cap of $12.87 billion, at press time. XRP’s 24-hour trading volume stood at $1.75 billion.
Ascending channel formation
Source: XRP/USD on TradingView
XRP’s surge could be hindered by formation of an ascending channel pattern, which could lead to a potential price breakout in the downward direction in the near term. Even as the coin surpassed the crucial $0.30 level briefly on Oct 17th, the coin could find itself breaching immediate support points formed by moving averages.
Moving averages project bullish phase
50 moving average was above 100 moving average, indicating a bullish phase for XRP in the near-term. Following a steep decline in XRP’s price on 24th September, the candles rested below the moving averages and acted as resistance points. The price dip led 50 moving average to fall below 100 moving average till October 8th. After a brief bearish phase, a trend reversal in the moving averages was seen after which the price climbed and breached significant levels.
XRP price was firmly supported by 50 moving average since the start of an uptrend on the 4-hour chart. Support points for the coin stood at $0.282 and $0.273, at press time. A breakout to the upside would mean challenging crucial resistance point at $0.30 and a subsequent barrier at $0.34, a level untested since July this year.
Indicators
Source: XRP/USD on TradingView
MACD line rested below signal line indicating possibility of a bearish phase for the coin, while RSI continued to project bullish buying sentiment among investors in XRP market.
Conclusion:
XRP’s price has been resisted by formation of the ascending channel pattern and MACD indicator which could potentially hinder a price breakout to the upside. Despite moving averages aligning with the bulls, the coin continues to struggle to gain significant upward momentum.
