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XRP Reloading for New Spike up Following 13% Plunge

Sun, 10/16/2022 - 11:10
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Arman Shirinyan
Cryptocurrency could be aiming at new price spike despite most recent correction
XRP Reloading for New Spike up Following 13% Plunge
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XRP has been showing one of the strongest price performances on the cryptocurrency market for the last two weeks. However, the short-term price correction pushed the asset back to the local support level at the 200-day moving average, and a new pattern is forming now.

XRP chart
Source: TradingView

According to the daily chart, XRP is forming an ascending channel after the upward surge. After an asset enters a channel, it causes volatility to decrease, which then leads to a breakout.

In the meantime, XRP is moving on the lower border of the channel, slowly sliding upward. The most likely scenario from here is calm movement up until bulls are ready to provide additional buying support for the asset and cause a strong move up once again.

Volume profiles paint grim picture

Unfortunately, some indicators show that the asset is on its way down as it slowly loses the support of investors, who previously caused a massive 61% price surge. Descending volume profiles act as preliminary signs of a reversal, but do not have high accuracy.

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Despite all the technical signs and movement of funds on the market, Ripple's success in court against the SEC is the main growth fuel for XRP despite the asset not having a direct tie to the company at this point.

Most likely, Ripple will end up winning in court, considering the large win streak, which is an extremely positive sign for XRP holders. At press time, it is trading at $0.48, having faced an 8% reversal after reaching the local high at $0.54. The trading volume has returned to the pre-pump level at 200 million XRP per day on Binance.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.