Biggest XRP Bullish Signal Turns Out False: Details

The recent move of XRP seemed to be a major bullish breakout as it made its first meaningful upswing since February. After forming for several months, the price momentarily broke above the upper bound of a symmetrical triangle pattern. This is usually a reliable indicator of an upward trend.

Though many traders began to doubt XRP's upside potential, this breakout was short-lived, as it soon dropped back below the upper range. Because it indicates weak buyer follow-through, the swift retreat below the breakout level is worrisome. A move above a pattern such as the symmetrical triangle typically increases the price by adding to the momentum. In this instance, however, XRP's incapacity to maintain the trend raises concerns regarding the asset's general strength in the current market climate.

Presently the pivotal points to monitor are approximately $0.57, where XRP is currently seeking support, and $0.60, the prior breakout point that is currently serving as resistance. More downside may be ahead for XRP if it is unable to hold above the $0.57 support, which could result in a move back toward the lower end of the triangle at roughly $0.55 or even lower.

Related

Sat, 09/21/2024 - 13:18

Tron (TRX) Price Is Bullish, But There's Catch

Dan Burgin

The lack of momentum on the larger cryptocurrency market is one of the primary causes of this unsuccessful breakout. A notable increase in volume is often required to verify the sustainability of a breakout, and XRP's move did not correspond to this. In the absence of a spike in buying pressure, the move was too weak to push higher. XRP appears to have limited upside potential in the near future.

The market is not yet prepared for a big bullish move, as seen by the swift reversal that followed the break above the resistance level of the triangle. It might be necessary for traders to hold off on anticipating a more prolonged XRP rally until they receive stronger signals or better market conditions.