- XRP price keeps respecting the longer-term green ascending trend line for the fourth consecutive week.
- To the upside, some moving averages are weighing on upside potential.
- Expect investors to wait for the perfect entry before the rally starts in 2022.
Ripple (XRP) is respecting both boundaries from both the upside and the downside, as the price action is in a weekly pennant with on the topside a red descending triangle from May and from below an ascending green trend line is giving support from December 2020. Although XRP price action looks more bearish, the green ascending trend line has been held on several occasions with good respect. Expect a possible brush against the ascending trend line to come in the first weeks of 2022 that will act as the starting point for the bull run that could shoot XRP back towards $1.36.
XRP is on the verge of a bull run in 2022
XRP price shows some signs of a more bearish trend with the last few weeks multiple tests on the green ascending trend line that has been forming the uptrend support throughout 2021. Each time a test saw a firm bounce off that trend line, the descending Simple Moving Averages (SMA) are posing a bit of a cap to further upside potential. Although this looks bearish, do not be fooled as bulls are patiently buying into the price action as the Relative Strenght Index keeps a moderate trend around 50 and has not dipped towards the oversold area throughout the year.
Investors in XRP will have used this week's test and retest on the green ascending trend line to buy into XRP coins before the rally is unleashed at the beginning of 2022. With more investors adding cryptocurrencies as an asset to their portfolio, a lot of position-taking will trigger growing demand overall and see a solid bullish reaction with XRP breaking above the 55-day and the 200-day SMA retesting the red descending trend line around $1.0. Once broken above, expect markets to perceive this as any downforces to be broken and see an accelerated move towards $1.36, holding 65% of gains.
XRP/USD daily chart
Should some headwinds start to pop up at the start of 2022, for example, with the geopolitical tensions turning into a possible war between Russia and the US over Ukraine in case the talks at the beginning of January fail, expect a massive move into safe havens with cryptocurrency positions as first to be cut short. In that case, the green ascending trend line would break and test $0.60 as the first base. In case of very serious escalations of tensions and global markets sharply on the back foot, even a $0.30 would not be impossible.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.