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Analysis

XRP stalls as ascending channel closes despite bullish buying sentiment

Shirly McCoy

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Source: Unsplash

XRP’s price rose to $0.28 and broke crucial resistances yesterday. The bulls however, took a back seat as the market went through a period of stagnancy. Over the past week, Ripple’s native digital asset has recorded a rise of 8%. After the ascending triangle closure seen in the last prediction, XRP bulls made headway and rose to a price of $0.275, holding a market cap of $11.91 billion on CoinMarketCap.

Bearish projection on the one-day XRP chart

Source: XRP/USD on TradingView

XRP’s daily chart projected the formation of an ascending channel, with the price trend leading to the channel tilted up. This was indicative of a price breakout on the negative side. The rise in volume confirmed the validity of the pattern. Additionally, the red closing candle could potentially be the start of a downtrend, something suggested by the formation of an ascending channel.

Moving average edge with the bears

The 100 moving average was above the 200 moving average for the most part. However, the moving averages underwent a bearish crossover on September 12 and the 100 moving average was resting below that of 200. 100 moving average acted as an immediate resistance at $0.294 for the XRP candles, a trend reversal could catapult the price to find another resistance at $0.32. However, if the predicted bearish trend materializes, the price of the coin could fall and test the support at a low of $0.233.

Positive indicators

Source: XRP/USD on TradingView

According to XRP’s long term price chart, despite pattern formation and moving averages aligning with the bears, the moving indicators depicted a bullish picture. MACD line was above the signal line after a bullish crossover, following the recent rally of the coin. Additionally, the RSI indicator was in the overbought zone. RSI line was above the 50 median, depicting bullish sentiment among XRP investors.

Conclusion

The XRP market exhibited signs of volatility with bearish pattern formation and moving averages and bullish indicators. The price breakout at this stage could go either way.

Shirly is a full-time member of the Editorial team of AMBCrypto. She is a Finance major and understands that blockchain is the key to a decentralized and equal market. Her previous work can be found on Medium, Blogger and Steemit. She held value in Bitcoin and Ether prior to being a writer here to "understand the FOMO" in the retail cryptocurrency space. Shirly is available at [email protected]