XRP Price Analysis: XRP/USD Explosive Breakout a Matter of Days?

  • XRP/USD sees further narrowing within the bullish pennant structure, breakout looms.
  • Ripple details in a recent blog number of financial institutions already leveraging XRP.

XRP/USD is trading within the confinements of a bullish pennant pattern structure. It has been moving within this for going on 3 weeks now, as the price range extremely narrows within the pattern. The price behaviour is demonstrating characteristics that would suggest a chunky breakout is very much imminent. Given how tight things are becoming now, with a lack of daily price fluctuation, eyes should be peeled for the next move.

Several Financial Institutions Leveraging Ripple’s xRapid

Ripple provided an update via a new blog post on Tuesday, in which they detailed how a host of financial firms are already leveraging XRP, as reported in full by the CCN team. The likes of Euro Exim Bank, JFX, SendFriend, Transpaygo and FTCS will be leveraging XRP for their cross-border transactions. In addition, Ahli Bank of Kuwait, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual/USEND and Rendimento are all signed on to RippleNet.

Technical Review – XRP

XRP/USD daily chart. Price action remains within the confinements of a pennant structure.

Firstly, looking at XRP/USD, the price has demonstrated strong signs of stabilization. This comes after a hard year of selling through 2018. Of course, price action is limited for now, but there are encouraging signs for the bulls as detailed earlier.

In terms of critical game-changing resistance, it is seen just ahead of current price levels. If viewing the 4-hour chart, XRP/USD continues to hug very closely to a descending trend line then a major barrier to the potential rally can be expected. This has significance as it is the upper trend line of the big pennant structure. It is tracking around $0.3800 figure, a firm break and close above, will be the key to greater buying pressure.

Furthermore, a realistic near-term upside target for the bulls would be to see a firm, committed, sustained move through and out of the $0.4000 price region. Eyes would then be on a return to $0.5000 territory. XRP/USD last traded here on 20th November 2018, during the period of hard selling pressure through November-December.

XRP/BTC Daily Chart

XRP/BTC daily chart. Price action moving within a range block formation, subject to a breakout.

As can be seen via the daily chart view, price action is moving within a range-block formation. It has been trading within this since 19th November, remaining firmly confined within as the price narrows. The high of this range-block can be seen at 0.000107515, with the low observed at 0.000085705. It appears technically there is more a chance of seeing upside surprises, as apposed to a breakout south.

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.

Featured image courtesy of Shutterstock.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.