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