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Analysis

XRP’s rising trend may be hampered by breach of ascending channel

Namrata Shukla

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Source: Pixabay

XRP’s price has been bearish for most of 2019, but spurts of growth have pleased holders of the token. After noting a peak in June, XRP has plunged to $0.2923 with a market cap of $12.63 billion. However, current short-term charts have projected a potential fall in XRP’s price.

1-hour

Source: XRP/USD on TradingView

Source: XRP/USD on TradingView

The one-hour chart for XRP showcased the breach of the ascending channel. The channel was characterized by two upward-sloping trend lines which marked the higher highs at $0.2981, $0.2987, and $0.3027 and higher lows at $0.2937, $0.2963, and $0.2978. The price was contained within the rising channel and fell. The fall was noted to be 5.91%, pulling down the coin’s price from $0.3023 to $0.2844.

The moving averages underwent multiple crossovers in the past one day, but the 100 moving average took the lead over the 50 moving average. This indicated a bearish market and was affirmed by the MACD indicator, which also lay under the signal line.

4-hourĀ 

Source: XRP/USD on TradingView

Source: XRP/USD on TradingView

XRP’s 4-hour chart indicated the formation of an ascending triangle that extended across October. The upward rising slope marked higher highs at $0.2605, $0.2840, and $0.3036, while the lower lows were marked at $0.2434, and $0.2518. The price has been rising along the channel and has been predicted to break towards the bearish end.

The 50 moving average rested above the 100 moving average after a recent crossover. The averages aligned under the candlesticks, noting a bullish market. However, the MACD indicator suggested a bearish trend as the MACD line was under the signal line, with a recent crossover.

Moral of the story

XRP already broke out of one ascending channel and awaits the breach of another, which might take its price further down.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.