XRP Price Analysis: XRP Price Nurtures A Potential 63% Breakout To $0.5

By John Isige
Published January 25, 2021 Updated January 25, 2021
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XRP Price Analysis: XRP Price Nurtures A Potential 63% Breakout To $0.5

By John Isige
Published January 25, 2021 Updated January 25, 2021
  • XRP stuck in consolidation while waiting for a breakout to $0.5.
  • The immediate upside is limited by the 200 SMA and the stubborn hurdle at $0.3.
  • XRP’s expected uptrend may fail to occur if the price drops under the symmetrical triangle.

Ripple has for a long time been in consolidation following the massive breakdown in December. The extensive freefall came after the United States Securities and Exchange Commission filed a case against Ripple Labs Inc., for selling unregistered security tokens.

Ripple eyes a breakout to $0.5

At the time of writing, XRP is doddering at $0.279 in the wake of a minor recovery from last week’s slump to $0.25. Slightly above the current price levels the 200 Simple Moving Average on the 4-hour chart caps movement.

For now, the odds impulse is in favor of the bulls as reinforced by the Relative Strength Index. A break above the midline will encourage more buyers to join the market. If enough volume is created behind Ripple, we are likely to see a breakout above the symmetrical triangle.

Note that the symmetrical triangle is created by two trendlines connecting a series of lower highs and higher lows. The trendlines converge at a relatively equal point called an apex. Simultaneously, a breakout above the upper trendline line results in a significant upswing while trading below the triangle culminates in extensive losses.

XRP/USD 4-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview

Breakouts or breakdowns from symmetrical triangles have an exact target, measured from the highest to the lowest of the pattern. Thus, XRP could soar to $0.5 if the price spikes above the triangle. However, the 50 SMA and the 100 SMA may absorb the buying pressure. XRP also needs to overcome the resistance at $0.3 to sustain the uptrend.

On the flip side, losses under the triangle would result in losses as low as $0.087. Other areas of support to keep in mind include $0.25, $0.20, and $0.17.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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