For nearly three weeks, the XRP coin price has walked a lateral path, reflecting the indecisive nature among market participants. This sideways action confined with two horizontal levels of $0.556 and $0.486 indicates the formation of a narrow range/rectangle pattern in the daily chart. Here’s how interested traders may use this setup to trade XRP.
Also Read: XRP Price Prediction: XRP Risks Downside Thrust, Sellers Growing Stronger?
Range Breakout will Trigger a Directional Move
- The range pattern formation creates a no-trading zone for XRP traders
- A bullish breakout from $0.556 resistance may surge the coin price by 20%
- The intraday trading volume in the XRP is $759.5 Million, indicating a 4.3% loss.
Source: Tradingview
The XRP price has been in a correction phase for the past two months. From the last swing high of $0.936 and coin price tumbled nearly 48% to reach the current trader’s price of $498. However, in response to broader market uncertainty the coin price has been consolidating since mid-August.
During the sideways action, the coin price rebounded twice from the upper resistance of $0.556 and lower support of 0.486. With an intraday loss of 1.24%, the sellers retested the bottom support, only to face intact demand pressure evidenced by the lower price rejection candle.
Therefore, a potential rebound from the bottom footing will encourage buyers to bullish swing and break above $0.556. This breakout will accelerate the buying pressure and likely surge to $0.665.
1 XRP to USD = $0.4992437 -0.24% (24h) Buy / Sell
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Can the XRP Price Fall Back to $0.42?
Amid an established downtrend, the asset price usually creates such short consolidation to recuperate the exhausted bearish momentum and prolong the downward march. Therefore, the XRP price is more likely to pierce the $0.486 support. This crackdown will release the build-up momentum to push the coin price 13% down to hit $0.42.
- Bollinger Bands: The narrow range of the Bollinger Band indicator reflect uncertainty among traders
- Relative Strength Index: The RSI slope reflects the underlying buying pressure is rising