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Analysis

XRP poised for trend reversal as bulls dominate despite ascending channel formation

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Ripple’s native digital currency, XRP, has been on a decline recently, despite its peer coins recording some gains. As the crypto-market remained tepid, major coins such as Litecoin and Ethereum failed to breach their resistances following Bitcoin’s latest dip, with the top-ranked coins continuing to battle with previously set resistances. XRP however, recorded a minor increase in its price at press time. After rising by 1.76% over the past 24 hours, the coin was priced at $0.253 on CoinMarketCap, at press time.

XRP Hourly Chart

Source: XRP/USD on TradingView

XRP’s hourly price chart depicted the formation of an ascending channel, with the price trend leading to the channel tilted upwards. This was indicative of a potential downward phase in the price of the cryptocurrency.

For a significant time, the 100 moving average acted as a resistance till it was breached on 4 October. The price projected a fakeout, which led to a breach in the trend and a minor spike to $0.253 after consistent upward movement. After the closure of the ascending pattern and a potential price dip, the immediate support that the coin could find itself testing was at $0.245, followed by another downside target at $0.23. XRP’s price had last tested this support on 30 September.

The 50 moving average was above 100 moving average; this suggested a high bullish trend for the price of the coin in the near term.

Indicators align with bears

Source: XRP/USD on TradingView

Despite a bearish pattern formation for the crypto, the MACD line was above the signal line and indicated a bullish phase for XRP.

Additionally, the Relative Strength Index [RSI] also depicted a potential bullish trend for the coin. RSI was nearing the overbought zone, meaning a bullish sentiment among buyers for the coin.

Conclusion

Despite signs of bearishness, the coin’s price could potentially swing higher. In the case of a bullish breakout, the first major target for XRP stands tall at $0.26-level, a level that was briefly touched on 1 October.

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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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