Ripple’s XRP: Triangle breakout just around the corner

Ripple’s XRP like most cryptocurrencies in the market corrected lower towards the end of last year especially in November and the first two weeks of December. Despite the losses, XRP has remained positively supported in the market. The support comes due to the financial solutions developed by the San Francisco-based blockchain company Ripple. Investors continue to see XRP real-world uses increase while solving inherent problems of the global financial sector.

Meanwhile, after XRP dived below $0.3 in December, there was an upward correction from the swing low around $0.285. The bullish bounce not only broke above the 61.8% Fibonacci retracement level taken between the last swing high of $0.4681 and the swing low of $0.285 highlighted by $0.40. Addition upward movement towards the Christmas period last year stepped above $0.45 and tested the swing high above.

Lack of the momentum to sustain growth towards $0.50 resulted in a retracement below $0.4. In fact, XRP/USD corrected below the 38.2% Fib level to form a low at $0.341. The trading in the last two weeks has been stable where XRP has been consolidation within a narrow range with the resistance at $0.4 and support at $0.35.

Moreover, there is a contracting triangle pattern on the 4-hour timeframe chart, which is approaching a breakout in the short-term. Besides, the triangle resistance, XRP is limited by the 50-day Simple Moving Average (SMA). A break past this short-term hurdles will pave the way for growth above $0.4. However, if the bulls lose their mojo and allow a drop below the triangle support, a breakdown impends and will see the asset correct towards the support at $0.3 and $0.285 respectively.

XRP/USD 4-hour chart