Ripple Price Hits $0.55 Resistance For Third Time Since Mid-April — XRP Symmetrical Triangle Formed
Will XRP Price Bounce or Break Down? | Credit: Veronica Cestari
Key Takeaways
- Ripple rebounds from low, forming symmetrical triangle.
- RSI and MACD hint at potential new uptrend.
- Breakout above descending resistance could signal bullish phase.
After ending a 43% downfall from $0.75 on March 11 to $0.42 on April 13 the price of Ripple started to recover. It rose to $0.57 on April 22 but this has not been higher since.
On Tuesday, May 21, XRP attempted to surpass this area but to no avail, and it is now back again below it. However, since April 13, a symmetrical triangle has appeared on the Ripple price chart, hinting at a potential consolidation. A breakout is expected shortly, but from which side?
XRP Price Analysis
A dip to $0.42 on April 13 was below XRP’s ascending baseline support anchored back in March 2020. After that, the price rebounded, oscillating around $0.50.
Indicators on the daily chart, including the RSI and MACD, suggest the downtrend may have concluded on April 13, heralding the start of a new uptrend. However, this potential shift requires further validation. In particular, there will need to be a definitive move above the descending resistance.
An effort to breach this resistance on April 22 pushed the price up to $0.57, but it faced rejection. The fact that the price stabilized around $0.50 following this rejection hints at the underlying bullish sentiment, as a more significant drop would likely have occurred if the primary downtrend was still active.
XRP Price Prediction
Zooming into the hourly chart, we see another lower-degree symmetrical triangle formed since April 13. Tuesday’s spike was short-lived but, on its downturn, XRP made a higher low of $0.52 and is now spiking up again.
May 23’s spike was still lower than May 21’s, but there is a strong change, and a breakout could occur. If it does, we could see a larger increase, signaling the start of a new bull phase. XRP’s next resistance level would be the descending one at around $0.60, where it meets the horizontal level.
But if this starts a new bull phase, we could expect the price to continue past this resistance. The symmetrical triangle can be counted as waves one and two, with the next wave optimally reaching the 1.618 Fibonacci extension. Our target would, in that case, be set at $0.70. However, if we see a next five-wave move, it should continue to $0.80.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
