The price of XRP has made several unsuccessful attempts at breaking above the long-term resistance line. In the short-term, the price is following an ascending support line and possibly trading in an ascending triangle. After reaching the resistance area at $0.34, it made a double top pattern combined with bearish divergence before falling right back to the support line.
- The major support area can be found in $0.26-$0.27
- The major resistance area can be found in $0.4-$0.42
- Price is trying to break through the year-long resistance line
- The breakdown was preceded by short-term bearish divergence.
XRP Price Analysis – XRP/USD Daily Chart
A look at the Daily chart for XRP shows that price is trying to break through the long-term resistance line for the 7th time. The line has been in place for 296 days. Price was rejected thoroughly two days ago and formed a massive bearish engulfing candle (could also be due to the sharp BTC drop) but is currently right back with another attempt at breaking above it. It is worth noting that the market has stalled significantly in 2019 with minimal fluctuations ranging from $0.35 to $0.3. This is in sharp contrast to the second half of 2018, in which price traded in the range from $0.25 to $0.75.
As for the indicators, the resistance line coincides with the negative Ichimoku cloud, which is also offering resistance to the price. Even though it is positive, the MACD has lost most of its power and is close to making a bearish cross. The RSI is at 53, indicating neither oversold nor overbought conditions and there is no bullish/bearish divergence. On a more positive note, the 21 and 50-period moving averages are close to making a bullish cross and are offering support to price. Price is trading below longer-term moving averages.
XRP Price Analysis – XRP/USD 4-hours Chart
A look at the 4-hour chart shows that after reaching the minor resistance are at $0.35 price made a double top combined with significant bearish divergence which preceded the drop. The resistance area also coincides with the 0.618 fib line of the entire drop from $0.38 to $0.29. However, we can also see that price is following an ascending support line which has been in place for 29 days. Price bounced perfectly on the support line and validated it for the 3rd time. It is certainly possible that price goes on to create an ascending triangle before breaking out of the resistance. If the price breaks down from the support line, the triple bottom scenario is in play with support near $0.28.
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Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]