- Ripple price is struggling to hold above $0.6 ahead of an expected breakout to $0.9.
- XRP/USD is required to close the day above the 50 SMA on the 4-hour chart to confirm an upswing.
Ripple is being treated to another day in consolidation as more buyers take a backseat, perhaps waiting for a breakout to be confirmed. The cross-border token is holding the ground slightly above $0.6. A massive escape is in the offing, targeting gains beyond $0.9.
Ripple’s breakout to $0.9 in the offing
Volatility is at an extreme low compared to the levels seen at the beginning of December. As discussed yesterday, the Bollinger Bands’ constriction is a signal for a near-term breakout. However, for a breakout eyeing $0.9 and $1 levels, XRP must reclaim the position above the 50 Simple Moving Average.
The 4-hour chart also shows XRP dancing within the confines of a symmetrical triangle pattern. A breakout is estimated to take place before the trendlines converge. This means that XRP/USD breakout could occur anytime in the coming sessions.
For now, the Relative Strength Index adds credibility to the consolidation, as it levels at the midline. Traders can watch out for spikes toward the overbought to ascertain that it is indeed a breakout to the upside.
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XRP/USD 4-hour chart
It is essential to note that the breakout would be counterproductive if Ripple fails to close the day above $0.6 or dives under the 100 SMA. The downswing could be just as massive as the expected upswing to $0.9. Therefore, XRP will likely refresh lower price levels around $0.3 before recovery comes into play.
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