XRP Price Analysis: XRP/USD Pulls Back for the Potential of Greater Upside
- XRP/USD cooled marginally on Thursday to make way for a further bull run.
- The price completed a technical move, breaking out and then retesting a pennant structure.
XRP/USD cooled during the session on Thursday, after a decent run of gains seen in the week so far. The price was seen down a marginal 3%, but a move which appeared to be very technical. During the session on Wednesday, the bulls managed to push for a chunky breakout from a pennant pattern. The pattern had been in play from 24th November, until the breakout as mentioned on the 28th. This had structure looked at the time very much stacked up in the bears favor. However, the bulls dying odds and making a move above the upper trend line of the pennant.
As described above, the bulls made a run to the north from the pennant. The price ran up to around $0.4080, before meeting with sellers in this known area of resistance. It is interesting to note, however, that the surge out from the structure has since pulled back and retested that. This behavior could very well be encouraging for the bulls in the coming sessions. It gives them room to capitalize on this recent price cooling. The comfort has been provided in their favor, with support tracking just underneath them, on top of the breached pennant.
The bulls must first push for another retest, of the supply seen within the latter stages of the $0.4000 territory. This area doesn’t appear to be too much of a barrier. Upon next approach of this, bulls should likely smash through, with enough momentum received after the recent pullback on top of the pennant. A conquering of the $0.4000 price region could open the door for a return to $0.45000. The price was last seen consolidating around this between the 21st November. This came just ahead of another slump towards the lows area of $0.3300.
Ultimately, the XRP/USD bulls will have in sight the big psychological $0.5000 mark. XRP last traded here on 20th November, when the price slumped out from another pennant structure. This one was on a larger scale and the price had been confined with from September to November. The big $0.5000 area is seen in proximity to that mentioned pattern. Should the wind really be behind the bulls, then the price could push firmly through the mark a test for a strong area of supply. The mentioned supply is seen tracking from $0.6000-0.$6500; XRP/USD hasn’t been above this since 21st September, which was short-lived.
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.