XRP price hints at bullish breakout towards $0.91
|- XRP is consolidating above a critical area of support.
- A 3-day close above this interest area has always been a bullish indicator.
- If validated, 30% breakout is likely to occur in the coming weeks.
XRP price consolidation above a significant demand zone hints at two things: early bulls are strong, and buyers waiting on the sidelines may FOMO in upon a breakout.
XRP price looks repetitive
Since XRP price collapsed from the all-time high, it appears to have developed a descending parallel channel that has provided support. Interestingly enough, the first 3-day close above the channel’s median trendline price has mostly resulted in additional price spikes of at least 20%.
On February 9, XRP price surged by 39% in just one day. Such a significant bullish impulse appears to have been triggered by stop-loss orders placed precisely at the channel’s median trendline.
XRP 3-Day Chart
Starting the week of February 9, a sell-off occurred, which sent XRP price back into the previous support levels. Investors wasted no time to add more tokens at a discount to their position while prices consolidated above crucial support.
Although XRP price is still technically in a downtrend, it should be considered as one of the better digital assets to look for early entries. Orders placed in the buy zone between $0.64 and $0.68 may never get filled as market makers could challenge short-term sellers at $0.90 instead.
In this scenario, being an early buyer is reasonable, but it is worth noting that a sell-off can still occur. It might be better to place a safety stop-loss order under the swing low at $0.62, which provides a 2-1 setup with a firm invalidation level lying 14% below the current XRP price.
XRP 4-Hour Chart
A break below $0.62 will invalidate the bullish thesis. If this happens, XRP price will likely challenge the $0.54 low and potentially print a lower low in the $0.44 range towards the opposite side of the parallel channel.
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