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XRP: This Pattern Hints at Positive Momentum for XRP Price

Fri, 07/07/2023 - 15:16
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Tomiwabold Olajide
XRP price hints at bullish momentum as this pattern appears
XRP: This Pattern Hints at Positive Momentum for XRP Price
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XRP, the sixth largest cryptocurrency by market value, could be on the verge of gaining positive momentum if a bullish pattern spotted on its daily chart is validated.

XRP has formed a cup and handle formation, and the price is consolidating between its daily moving averages.

A "Cup and Handle" is a bullish continuation pattern that indicates a consolidation period followed by a breakout. A Cup and Handle chart pattern depicts an asset's price movement resembling a cup, followed by a downward trending price pattern.

XRP/USD Daily Chart, Courtesy: TradingView

Because the handle in this pattern development typically has a downward slope, XRP is forming a consolidation channel on the daily timeframe after forming the cup pattern.

If XRP can break out of the consolidation channel with significant bullish momentum, the price may resume upward movement.

360 Million XRP Bought by Whales Ahead of Major Price Move

A break and close above the daily moving averages of 50 and 200 will be the first indicator of strength. This might pave the way for a rally to the $0.565 to $0.584 levels, where the bears are expected to put up a hard fight.

On the other hand, given that the sellers have resisted bulls' attempts to move and sustain XRP above the moving averages, bears will try to bolster their positions by pushing XRP below the immediate support level of $0.45. If they succeed, the declines May continue, and XRP may fall to the strong support level of $0.415.

Another possibility is that the XRP price will maintain its consolidation move within its moving averages until a breakout happens, either upward or downward.

At the time of writing, XRP was marginally up in the last 24 hours to $0.4673.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.