XRP Price Analysis: XRP/USD Subject to a Breakout Higher from a Descending Wedge Formation

  • XRP/USD price action is moving within a descending wedge pattern, which is subject to a breakout north.
  • CoinGate has added XRP as a payment option, which is part of a gateway to 4,500 online stores.

Ripple’s XRP continues to trade around a huge buying area, which is initially seen from $0.3000-$0.2500. The price has been grinding lower throughout the early part of 2019. This having been the case after the bulls ran out of upside momentum at the back end of 2018. A chunky move to the north had been observed from 17th up to 24th December 2018. XRP/USD at the time gained a whopping 60% after receiving big buying momentum just sub-$0.3000. The high print on 24th December was at $0.4680, before the sellers aggressively piled in.

Since, XRP/USD has reversed 100% of that initial upside seen in December. Price action has formed a descending wedge formation, which is subject to an eventual breakout to the upside. Earlier in the week, the price dipped into the well-known area of demand, which saw an aggressive move north. A double-digit jump was observed, advancing around 12% in that single session. However, the momentum was quickly lost, with the price hitting the upper trend line resistance of the wedge. Given the most recent rejection, XRP is likely to continue grinding south for now.

Enough perseverance by the market bulls and penetrating the upper support should eventually force a breakout. Confluences are gradually stacking in favor of the buyers, given the technical formation and the big buying area noted.

CoinGate Integrates XRP as Payment Option 

CoinGate, the cryptocurrency payment gateway, has just announced that they have integrated XRP into their systems. As a result, the payment option of XRP will be made available for over 4,500 online stores. This move by the organization came due to the increasingly growing demand seen across their community. XRP has been added by a means of new payment, which will accompany the likes of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others.

CoinGate on the announcement detailed, “The payments with XRP cost less than a fraction of penny – $0.00001, to be exact. The excellent performance and undeniable convenience make the ledger a sound tool for executing casual payments globally. That is the main reason why we chose XRP for our next big step in development. With that said, we believe XRP can become a huge player in the payments industry, and not only for businesses.”

Technical Review – XRP/USD

XRP/USD daily chart.

The key for a greater wave of buying pressure would be for XRP/USD bulls to breakout to the upside from the descending wedge pattern. This can be observed tracking at just above $0.3200, such a jump north could send the price back to $0.3500 initially. Looking further to the north, eyes will then be on the $0.4000 mark – XRP/USD last traded here on 10th January. Support as detailed earlier, remains firm from $0.3000 down to $0.2500. Further buyers would also likely be seen at the $0.2000 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.

Author:
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.