Technical Analysis and Market Entry: XRP/USD Moving within Another Bullish Structure, Subject to Breakout
- XRP/USD is moving within consolidation mode, as the price settles following significant volatility seen last weekend.
- Price action via the 4-hour chart view is moving within another bullish pennant structure, subject to a potential breach.
XRP/USD: Recent Price Behavior
Ripple’s XRP price has been forced to cool recently following the sharp moves higher on 22 June. XRP/USD on the day jumped as much as 12% up to $0.5050, before then losing much of that upside momentum. It was the highest the price has been since 19 November, a time when the market was in a steep downward trend.
Despite the recent cooling, XRP/USD price action has been demonstrating much bullish complementing behavior. Since the breakout from a technical pennant structure, the price has played out to the textbook in moving further north. XRP had broken out and retested the noted pattern, it was seen between 17-21 June, before running to the noted $0.5000 territory.
Latin American Banks Testing xCurrent
Ripple recently entered into the Brazilian banking markets, which had already seen several banks committing to the testing of its xCurrent platform. The likes of Banesco Panama and Scotiabank Chile are part of Ripple’s new initiative to cover ground on the whole Latin American market. Reports suggest that close relationships are being maintained with all parties involved with regulators locally.
Upon successful testing, Ripple should have an opportunity to provide its technology to other countries, such as Panama, Dominican Republic, Puerto Rico, Portugal and Spain. These noted territories are where Banesco has a presence; it will look at offering the blockchain-based transaction to its project partners initially.
It is important to note that the banks have not committed to using the cryptocurrency XRP; instead, they are going to be leveraging xCurrent, which does not require the token.
The price is attempting to find firmer footing within the stubborn acting supply zone. It runs from $0.4400 up to $0.4800, and XRP/USD has not comfortably traded above since November 2018. Given that the bulls were unable to force a daily candle body closure above demonstrates the strength of the supply area.
Once a firm push north and daily closure above $0.4800 has come into effect, a fresh wave of buying pressure could very likely be seen. Bulls could use this acting zone as a new demand area, a potential launch pad for further gains. The longer XRP/USD can trade within the noted territory, the more likely it can be broken down by the buyers.
In terms of entry, an opportunity of interest can be seen via the 4-hour chart view. Price action is moving within a bullish pennant pattern structure, given the recent consolidation. The lower supporting trend line is seen at $0.4550, the upper acting trend line at $0.4750. A breakout and retest of this pennant could provide an attractive point of entry at around $0.4800-$0.4750.
To the upside, targets of interest include $0.5600, the high area of 6 November and $0.6000, an upper zone of supply. Stops would be placed just below the near-term pennant at $0.4500. Should any failure occur with the noted entry, another retest of the daily pennant below at $0.4200 may come back into play. It could provide another attempt for a buy, with the same targets applicable.
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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