XRP’s Price at Decisive Point Following Chart Pattern Formation

XRP’s Price at Decisive Point Following Chart Pattern Formation

  • The price of Ripple (XRP) has breached its consolidation phase.
  • Following the breach out of the consolidation phase, the remittance token is hovering above multiple support levels.
  • XRP’s price faces a decisive point at the moment as a descending triangle has formed on the 4-hour chart.

The price of Ripple (XRP) has breached its consolidation phase. However, the breach did not include a high degree of volatility. Following the breach out of the consolidation phase, the remittance token is hovering above multiple support levels, making it more difficult for XRP’s price to move further down.

XRP’s price faces a decisive point at the moment as it has set up four equal lows and five lower highs since May 13. Connecting these swing points with trend lines results in a descending triangle.

Looking at the technical formation, it is forecasted that there will be a 13% downswing to around $0.345. This is obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.398.

On May 26, Ripple breached the lower trend line, which triggered a bearish move to $0.375. However, the lack of volatility in Bitcoin has yielded tiny returns for most of the altcoin market.

Descending triangle forms on the 4-hour chart (Source: TradingView)

Should a resurgence of volatility take place that favors bears, the coiling up taking place in XRP will end in a massive crash. Therefore, it is important that investors exercise caution and prevent getting caught up in the wrong direction.

On the other hand, if the volatility fails to manifest, the price of XRP may resume its downward move to retest at least the $0.371 support level. This, coupled with continued bearish pressure, could result in the price of XRP going as low as $0.345.

If bulls are able to make a comeback, there is a good chance that a reversal rally will be triggered. With this as the case, Ripple will face a hurdle around the descending triangle’s base at $0.398.

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Original Source :coinquora.com

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