- XRP price action is caught in a symmetrical triangle.
- With the downtrend still in play, a break to the downside looks to be the outcome.
- Support at $0.84 looks to give way and would push XRP price action to the monthly S1 level.
Ripple (XRP) price action consolidates in a symmetrical triangle formation, with prices getting squeezed in from both sides evenly. The overall downtrend is still very much intact since September 7 and looks to be still dictating further moves in XRP price action. With intermediary support at $0.84, XRP sellers will look for the monthly S1 support level to target booking profit.
XRP bears have more room to book profit
XRP price action has drawn a symmetrical triangle on the chart, with an even test on the downside and the upside. Both bears and bulls have dipped their toes to see how strong or weak this formation is. But for the moment, it looks to be an even battlefield.
However, bears are still very much dictating the price action, as three elements are backing their corner. At first, the 200-day Simple Moving Average (SMA) around $0.96 forms a cap on price action for XRP. The 200-day SMA is a hefty and important element, as in the past it played the role as price cap before, muting any further possible upside. A force to be reckoned with.
XRP price bears have as a second reason the daily Relative Strength Index (RSI) – which is sub-50 – but is not threading the oversold barrier. This gives bears more room to still push price action in XRP further to the downside. Overall, bears favor here as the overall sentiment is still very much in a downtrend since September 7.
XRP/USD daily chart
Expect a pennant breakout, with XRP price dipping towards $0.84. As that barrier is only an intermediary level, a further leg lower is the probable outcome towards $0.78. This level has more credibility, with importance coming from June 09, and falls in line with the monthly S1 support level. Sellers will have this level indeed lined up as an area to cash in some profit.
If market sentiment should shift to the upside, expect bulls to attempt and break out of the pennant, with a possible overhaul of the $1 marker.
Like this article? Help us with some feedback by answering this survey:
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.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data
BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears
SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.