Technical Analysis and Market Entry: XRP/USD – Only a Matter of Time for Big Bull Breakout
- Ripple’s XRP price is back within the control of the market bulls, running towards its third consecutive session in the green.
- XRP/USD price action continues to move within the confinements of a formed bullish pennant pattern structure, subject to an imminent breakout.
XRP/USD: Recent Price Behavior
Ripple’s XRP price is on its way back to the north, running at its third consecutive session in the green. It comes after two sessions of deep losses, following the price faltering within a substantial area of resistance. On 3rd June XRP/USD once again attempted to breakdown a supply region, this tracks from $0.4400 up to 0.4800. The price was forced to drop as much as 17% after being dealt with a rejection blow. Despite the high volatility observed, XRP has managed to stabilize and form a bottom around the $0.4000 area.
Big Barrier Taming the Bulls
As noted above, the supply zone is a problem for the bulls, who are struggling to break through and continue their recovery. There have been multiple rejections within the described territory over the last three weeks. The price has not traded comfortable above since November 2018, proving just how big of an area this is should the bulls finally manage to break.
Once the push north of this zone and daily close above has come into effect, it should leave the door wide open to further upside pressure. The next major area of interest is up at the psychological $0.5000 territory. XRP/USD last traded up at these heights on 19th November 2018, when it had entered a steep bear market.
XRP/USD has been moving within a bullish pennant pattern structure since 15th May via the daily chart view. Price action is very much narrowing within this structure, as it remains within its confinements. However, given the persistent testing from the bulls, a breakout is likely to be near. A potential push above the pennant allied with the supply zone in proximity could attract strong bullish momentum.
A buy position would be attractive once a daily break and closure above have materialized from the pennant structure. Should this play out, eyes will be on a firm move into the $0.5000 territory; the next major zone of interest is seen at $0.5700-$0.6000. Further north, a wick fill of the large bullish candle produced on 21st September leads to a secondary target of $0.7500. In terms of a stop loss, this should be considered just below the noted current acting supply zone, $0.4300.
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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