Technical Analysis and Market Entry: XRP Bears are Making a Breakout From a Bearish Flag
- XRP/USD price action is consolidating and demonstrating reassuring signs for more considerable upside.
- The price is sitting above critical resistance at $0.2850, which can be used as a launch-pad by the bulls.
XRP/USD Recent Behaviour
XRP has been moving within consolidation mode for going three weeks now, as the bulls look to regather upside momentum. The price now appears to be stabilizing, following a harsh period of selling that came into play from June until late September. XRP/USD fell from the heights of the psychological $0.5000 mark.
The promising signs for the buyers are that there is greater stability, as the price moves within known buying areas. There are growing buying signals, which would suggest that more significant momentum is to come potentially. Despite the heavy selling pressure, the $0.2000 territory managed to withstand and prevent the price from free-falling.
Weekly Chart View
XRP/USD has been grinding to the upside over the last six weeks. It has finished in the green five out of those. An advance of 30% within the noted period, as the price holds above critical weekly support, former acting resistance, $0.2850. It is of great significance to the XRP recovery, given its previous role as a launch-pad to accommodate further moves north.
Daily Chart View
Price action via the daily chart view is moving within an ascending channel structure, which can also be viewed as a bearish flag. The noted price behaviour suggests there could be one more dip, before big potential bull action. XRP/USD is subject to rejection at $0.3280, where a strong daily/weekly resistance is observed. A daily break and closure above here could rule out the potential bearish noted setup.
At the time of writing, the bears can be seen pressing for a breakout to the downside of the noted bearish flag pattern. Should the body of the candlestick close below, this could very likely invite a fresh wave of selling pressure. Eyes will initially be on the critical support of $0.2850, a bounce may be seen here and then a retest of the flag.
In terms of entries, waiting for a breakout and then retest leading to rejection would be favourable at around $0.2950. Downside targets would be $0.2700, $0.2550 and then $0.2350. Stops would be placed at $0.3050.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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