Technical Analysis and Market Entry: XRP/USD Bulls Enjoy Explosive Breakout of Pennant Structure
- XRP/USD is shooting to the north, moving to the highest levels seen in six months.
- The XRP bulls have made a significant breakthrough, moving back above the psychological $0.3000 mark.
XRP/USD: Recent Price Behaviour
Price action for XRP/USD is making solid moves to the upside, rising to the highest levels seen since July 2019. The bulls have been rallying for the last three consecutive sessions, following a brief period of consolidation. XRP did narrow for a few days between 5 – 11 February before breaking out aggressively higher, as seen in the lastest bull run.
The foundations for the current trend to the north were laid back in December 2019, after bottoming out at depressed levels of $0.1800. XRP/USD had been forced to the lowest price seen since October 2017, before being able to kickstart a recovery. The bulls at the time did break out of what could have been a bearish pennant. It instead proved to be a narrowing range block, which is typically subject to an explosive breakout.
Weekly Chart View
XRP/USD has more or less been consecutively on the rise for the last six weeks. There was a short period of consolidation during the week of 20 January, where the bulls smashed through a critical resistance at $0.2150. A retest of the noted prior acting resistance was seen, before a further surge to the upside.
Over the noted six-week period, XRP/USD has rallied a chunky 72% at the time of writing. The bulls during this have managed to push back above the psychological $0.3000 area. It had been a known stubborn region for sellers. However, the bulls are working their way for a closure above.
Daily Chart View
Price action was moving within a bullish pennant structure between 6-11 February, while XRP/USD consolidated. A rather massive breakout to the upside came into play during the session of 12 February. It produced its best daily gain that had been observed since 25 October, with the bulls further capitalizing in the current session of 13 February.
Given the pace of upside momentum, further moves to the north remain favourable. In terms of entry for buy positions, this is eyed at $0.3150, a prior daily resistance. A retest and hold here would be enticing to go long. Targets to the north; $0.3450, $0.3700 and then $0.4000. Stops to be placed below the noted prior resistance now support, leaving enough breathing room at $0.3100.
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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