For nearly two months, XRP price witnessed a steady downtrend under the influence of a falling channel pattern. Traders were aggressively selling on the bullish bounce, extending the correction phase to lower chart levels. However, today’s 2.1% price jump signifies a potential break in the bear’s grip and suggests an entry sign for trend reversal.
A breakout from the upper trendline of the channel pattern signals the end of the ongoing correction in XRP. However, the downsloping ADX reflects the buyer’s lack of strength, emphasizing that a candle closing is crucial for buyers. The intraday trading volume for XRP is $513.4 million, marking a 15% loss.
With a strong bullish candle in the daily time frame chart, the XRP price shows a breakout attempt from the resistance trendline of the channel pattern. This breakout might present an opportunity to long this altcoin but requires candle closing and sufficient confirmation from trading volume. If the buyers can maintain their position above the flipped trendline, the XRP price could foresee a swift 5% jump to reach the $0.5 mark.
In theory, each swing high in the channel pattern formation acts as a significant target. Therefore, if the bullish momentum persists, the XRP price could retest the $0.547 ceiling, followed by $0.58. The bullish thesis, however, will be invalidated if the coin price plummets below the trendline by day’s end.
A successful breakout from the channel pattern trendline will boost the underlying bullish momentum in XRP price. The pierced trendline could act as a springboard for buyers, challenging the $0.5 psychological resistance. The traditional pivot levels indicate that the XRP price may experience overhead supply at $0.48 and $0.54, while demand pressure is marked at $0.41 and $0.37.
In addition, the DMI’s bullish crossover between the DI+ (blue) and DI- (orange) slope provides further confirmation for rising bullish momentum. This potential trend reversal instills hope in the crypto community that the XRP price might reclaim the $0.5 mark.
On a related note, Ripple CEO Brad Garlinghouse recently made waves in the crypto industry with his prediction on the timeline for the Ripple Lawsuit judgment. He expects a verdict soon, citing the upcoming court ruling on Hinman Docs as a crucial factor that he believes will be a significant win for Ripple. Crypto enthusiasts and investors eagerly await the outcome, with the understanding that market conditions are subject to change. As always, thorough market research is essential before investing in cryptocurrencies to minimize personal financial loss.
Source: Coingape
