Ripple (XRP) Technical Analysis: Continues to Rise Strong Against BTC, Can This Momentum Endure?
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Ripple rose a further 13% against BTC first thing this morning, perhaps provided by late arrivals joining in XRP rally after the xRapid comments made in a CNBC interview yesterday. 24hr XRP trading volumes almost tripled during the opening impulse leg from $250,000,000 to $705,000,000, as bullish traders flocked to capitalize on the latest news.
Throughout the course of today’s trading, however, the crypto market already began to correct from this sudden frenzy, with the global market capital slipping back down below $200 billion for the 4th time this month.
Is this just a temporary correction as bulls ready themselves for a second run, or was this recent support just a pump and dump off the back of the CNBC news? Let’s take a look.
The Story So Far
Diving into the XRP/BTC chart over 4hr candles, we can see that XRP has been traveling inside a long falling wedge pattern for most of this year, tracking particularly closely to the downtrending resistance over the last 3.5 months.
After finding the bottom at 4,050 Sats, XRP began traveling sideways as bulls finally started to return to the asset. The timing could not have been better for Ripple, as this week’s array of news, including Saudi Arabia’s National Commercial Bank joining Ripplenet, the recent xRapid comments, and rumours that XRP could be used as a tipping coin on Youtube coincided perfectly with the asset retesting the incredibly strong wedge pattern resistance. Excitement from these announcements enabled bulls to breakout strongly beyond this point and attracted a wave of support from other investors to complete this bullish reversal pattern.
The Story Now
Right now, XRP is holding well after briefly correcting from its opening run. The asset has endured little selling pressure from bears at this stage, which is a good sign that this bull run is likely to continue.
We have yet to see the 50 EMA converge above the 200 EMA at the moment, but it’s getting close. Once this happens, it will be a strong confirmation of a bullish continuation. Looking at the other indicators over a closer 2hr range, we can see a number of other promising signals hint that XRP could continue to rise over the short-term.
- On the MACD indicator, the 12MA is still holding high above the 26MA and the signal line below.
- On the RSI, now that XRP has corrected, it has now returned back into the index channel after exiting briefly into the overbought region.
- The Chaikin Money Flow indicator plateaued briefly as the asset corrected, but is now starting to arc back upwards as buying pressure increases.
Ripple (XRP) Price Targets
All price targets are set from the 5,120 Sats mark where the asset is currently valued (at the time of writing).
Price Target 1: Retest key resistance area at 5,412 Sats (5.70% ROI)
Price Target 2: If XRP can break through this strong resisting level then the next goal will be to test the first resistance of the bull target above at 6,909 Sats (20.59% ROI)
