XRP Price Analysis: XRP/USD is Free to Run Wild Following Triangular Structure Escape

  • XRP/USD is running at two sessions in the green, as the bulls escape from a triangular pattern structure.
  • The supply zone is tracking from the $0.3300-$0.3500 price range; it must be broken down for more significant upside.

XRP/USD: Recent Price Behavior

XRP/USD is heading towards its second consecutive session in the green, as the bulls attempt to find some rhythm. Price action has been extremely choppy, with a lack of committed direction from either camp. It has been 19 days now that XRP/USD has traded within a mundane range, the high up at $0.3600, with the low down at $0.2900.

However, there are gradually some promising signs starting to crop up now. XRP/USD is running at its third consecutive week with the closure of gains. It is the most consecutive run observed since September 2018. Over this three-week advance, the price has gained around 10% as the bulls demonstrate signs of consistency.

Triangular Structure Escape

XRP/USD daily chart.

XRP/USD has been moving within a triangular pattern structure since 24th February, respecting the upper and lower acting trend lines of this path. The price was forced to trade within this consolidation mode after failing to breakdown a game-changing supply zone.

Sellers are camped from $0.3300 up to the $0.3500 range; the price has not comfortably traded above this since 10th January. Rejections have been seen in March, February and January this year, each time being forced to retreat to find demand around $0.3000.

On 15th March, XRP/USD managed to see a daily closure above the detailed pattern formation. The bulls have managed to extend further north away from the upper acting trend line on Saturday. However, the price must once again attempt to smash the noted supply area.

Roadmap to the North

As already described, the first hurdle for the bulls is to clear the $0.3300-$0.3500 area. Should XRP/USD managed to find its way and close above, a fast move back into the $0.4000 territory could occur. The price has not traded up at these heights since the December-January period, where bulls lost much momentum.

Further north, resistance would then likely need to be taken care of within the $0.4500-$0.4600 range. Once the bulls have made such advances, the door in no time will be left open for a return to the psychological $0.5000 territory. The price has not traded up at these heights since November 2018. It must not be forgotten now that the bulls have so much more to work with in terms of technical areas of resistance. In comparison to the free run, XRP/USD had to the north back in 2017, where there was little in the way of historic levels.

In terms of support, immediate comfort will be eyed just on top of the breached triangular structure. The former upper acting trend line of this pattern is tracking at $0.3270, where the price will likely seek refuge in the near-term if need be. Aside from this, heavy buying protection remains in and around the psychological $0.3000 mark.

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.

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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.

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