|

Here’s what the recent XRP price action means for investors

  • Ripple price shows an ascending triangle formation spanning over the last two and a half months.
  • This development could yield a conservative 7% to 15% upswing; a breakout could trigger a 25% ascent.
  • A daily candlestick close below $0.318 will invalidate the bullish thesis and trigger a bearish breakout. 

XRP price shows an ascending triangle formation, hinting at a bullish breakout. However, the altcoin is at a point where it could turn either way. Hence, investors must wait for double confirmation before jumping on this bullish trade.

Ripple price ready to make its move

XRP price has been producing higher lows and equal highs since June 10; connecting these swing points using trend lines results in an ascending triangle formation. This technical formation forecasts a 25% upswing, determined by adding the distance between the first swing high and swing low to the breakout point at $0.381.

Currently, XRP price is hovering around the bottom of the said pattern and has not given any discernable bullish hints except the ascending triangle formation. Therefore investors need to wait for a market structure shift, aka a flip of the $0.340 hurdle into a support floor.

This development will not only create a higher high and shift the market structure favoring the bulls, but it will also push buyers to start accumulating the remittance token. In such a case, investors can expect Ripple price to make a run for the immediate hurdle at $0.360. 

Clearing this level will allow Ripple bulls to trigger a run-up to $0.381, which is an inflection point. A daily candlestick close above this barrier will reveal an ascending triangle breakout, which forecasts a 25% run-up to $0.477. 

XRP/USDT 1-day chart

XRP/USDT 1-day chart

While the bullish outlook is logical and plausible, investors have no confirmation to start accumulating Ripple price at the current level of $0.332. Moreover, if Bitcoin price tumbles, there is a good chance the remittance token will follow.

In such a case, a daily candlestick close below $0.318 will create a lower low and invalidate the ascending triangle formation and potentially trigger a crash to $0.309, where buyers have a chance to come in and attempt recovery.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.