XRP Price Analysis: XRP/USD Screaming Buy; Just a Matter of Time Before Big Bulls Kick In
- Ripple’s XRP price action, despite being within consolidation mode, is still subject to some further potential upside pressure.
- XRP/USD has broken out of and retested a bull flag formation, observed via the daily chart.
XRP/USD: Recent Price Behavior
Ripple’s XRP price at the time of writing is nursing losses of around 4% and is back under pressure after briefly stabilizing over the past few sessions. A large waved of volatility had rippled across the market on Sunday, which still appears to be affecting the price. XRP/USD continues to trade around the 2019 low area, where it was very much subdued. Any short-term bull rallies are being sold quickly by the bears; the upside is limited for now.
Bull Flag Pattern
XRP/USD earlier this month managed to break out to the upside from a descending channel or bull flag formation. The escape by the bulls came into effect on 18th February, where they made a double-digit move to the upside. On 24th February, the price saw a retest of the breached flag formation; this testing is still being seen today on 27th February.
The pole of the described pattern saw a price climb from $0.2950 up to $0.4100, which equates to a 42% move. Should this flag play out to the textbook, then a near-term rally could see XRP/USD back towards the range of $0.4400-$0.4500.
The price is currently within consolidation mode, pending its next committed direction. Given the current behavior, indications are of another potential rocket to the north. It is trading in proximity to a substantial historical area of demand, which tracks from the psychological $0.3000 mark to $0.2000. Chunky buying has come into play in this zone, particularly in December 2017, August, September and December 2018.
Technical Review – XRP/USD
Since the gradual fall of XRP’s value that kick-started at the beginning of 2018, the price on this decline has created much work for the bulls. During periods of consolidation ahead of further drops south, XRP/USD has created several zones that the bulls must now try and break back above. An area of supply is immediately seen running from the $0.3500-$0.3600 range. The price has not been above this area since 10th January.
Further to the north, a troublesome zone of resistance is noted at the $0.4000 territory; on several occasions, it has proven to be very much tricky. Should the bulls manage to break this down, then a fast move would likely be seen back towards $0.5000. XRP/USD has not traded up at these heights since the back-end of November 2018.
In terms of support, this is seen at the upper acting trend line of the bull flag pattern. If this fails to hold, $0.3000-$0.2950, then a deeper fall into the demand zone of $0.3000-0.2500 would likely occur. Lastly, another safety net is noted at the $0.2000 figure; XRP/USD has not traded down here since December 2017.
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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