XRP Breakout Imminent Based on Several Technical Patterns

XRP is contained within a trading range since Nov. 22. Now, several technical patterns estimate that it could be bound for a bullish impulse.
Posted in: Cryptocurrency News
December 13, 2019 3:44 PM UTC
  • XRP’s price has been stagnant for a while.
  • Multiple technical patterns estimate that an upswing is underway.
  • A spike in sell orders could be catastrophic.

XRP has been contained within a narrow trading range over the last 20 days.

Now, several technical patterns are estimating that this cryptocurrency could be bound for a bullish impulse.

XRP has been consolidating for the past 20 days. | Source: TradingView

XRP shows multiple bullish signs

Since Nov. 22, XRP has been trading within two parallel lines based on its 12-hour chart. Every time it drops to the lower edge, it moves back to the upper one. But, when it surges to the upper line, it pulls back to the lower one.

XRP is contained within a parallel channel. | Source: TradingView

The rebounds from the lower boundary of the parallel channel appear to have been predicted by the TD sequential indicator. This technical index presented a buy signal in the form of a red nine candlestick on Nov. 26. The bullish formation was followed by an 8.3% upswing to the upper boundary of the channel.

A similar phenomenon took place on Dec. 5. As XRP retraced to the bottom of the channel, the TD sequential indicator gave another bullish signal in the form of a red nine candle. The buy signal was succeeded by a nearly 10% upward momentum taking this crypto to hit the upper parallel line.

Now, this indicator is once again on a red nine candlestick estimating that XRP is bound for a jump back to the upper boundary of the parallel channel.

The TD sequential is timing every upward movement by XRP. | Source: TradingView

An increase in the buying pressure behind XRP would likely validate the bullish scenario presented by the TD sequential indicator. If this happens, this cryptocurrency could be preparing to breach $0.23. Breaking above this significant resistance level would be followed by higher gains.

Nonetheless, the bullish outlook could be invalidated if a red two candlestick starts trading below a proceeding red one candle. Such an unexpected turn of events could trigger a sell-off that takes XRP down to $0.20 or lower.

Disclaimer: The technical analysis above should not be considered trading advice from CCN.com. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in different cryptos but does not engage in short-term or day-trading.

Sam Bourgi edited this article for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor or find a factual, spelling, or grammar error, please contact us.

Last modified: January 22, 2020 11:41 PM UTC

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Ali Martinez @satoshilatino

Ali was born in Boston and began forex trading in 2012. In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin. Ali can be reached via email at satoshilatino@gmail.com

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