During September’s second-week sell-off in the crypto market, the XRP price breached the $0.486 local support. This slide, which was further exacerbated by a surge in trading volume, signaled the potential continuation of the bearish trend. However, in a twist of events, the price trend made a swift reversal, riding on the coattails of the overall bullish sentiment in the market. This bullish response has seen the prices move above their previously broken level, suggesting a failed breakdown. Here’s how this setup could impact the near future trend of the fifth-largest cryptocurrency.
Also Read: XRP Holders Prepare For Ripple’s Victory Party, Rally To $1?
Newfound Recovery Bolster Buyers For a Rally Above $0.52
- Sustained buying momentum sets the coin price for another 5% jump
- The XRP price may prolong the sideways trend under the influence of a triangle pattern
- The intraday trading volume in the XRP is $619 Million, indicating a 13% loss
As the market’s bullish sentiment continues to permeate, XRP price has posted an impressive 8.6% gain over the past five days, placing its current trading price at $0.498. This positive momentum effectively nullified the recent breach of the $0.486 support, marking it as a possible bear trap.
Such scenarios tend to attract heightened buying activity as trapped short sellers look to exit their positions, thus driving the price up. This theory gained more traction when, on September 15th, the altcoin price surged past the high of the breakdown candle at $0.498, essentially neutralizing bearish intentions.
Given this momentum, if the bullish trend holds, the prices could see another 5% uptick, aiming for the overhead trend near the $0.52 mark. This descending resistance trendline has already stymied the coin’s growth twice and remains a barrier for bulls to surmount. If faced with rejection at this point, the XRP price may enter a consolidation phase, trading sideways in the coming days.
Here’s How XRP Price May Trigger a Directional Rally
The daily time frame chart shows the XRP is currently trading within a symmetrical triangle, bounded by two converging trendlines. Such patterns typically indicate indecision in the market and often precede significant price moves, once a breakout (or breakdown) occurs. For the coin holder to instigate a more lasting recovery, it’s imperative for the bulls to shatter the overhead resistance trendline, confirming a bullish breakout from the symmetrical triangle. The post-breakout rally may set the first target at $0.55, followed by $0.6
- Bollinger Bands: The horizontal shift in the upper boundary of the Bollinger Bands indicates it might serve as a potential resistance, possibly hindering Ethereum’s ongoing relief rally.
- Directional Movement Index: A negative alignment between the DI+(blue) and DI-(orange) indicates the bearish momentum in action.
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