The XRP price is trapped between a descending trendline and $0.316 support. As both these levels are bound to converge at a single point, the prices should eventually break out from either of the mentioned levels. This range breakthrough should offer an entry opportunity to interested traders, with a strong rally on the breakout side.
Source- Tradingview
Possibility For A Trendline Breakout
The weekly chart shows the XRP price has been falling for nearly two years under the influence of a descending trendline. The prices have reverted from this dynamic resistance multiple times, indicating the traders are aggressively selling on rallies.
However, this resistance trendline also offers an excellent trading setup for buying if the price break the overhead trendline. A bullish breakout from this trendline may signal an early sign of the trend reversal.
Moreover, the potential early target for this breakout will be $0.55, but in a more favorable scenario, the price should surpass $1.
The $0.316 Level Offers Strong Support.
While the weekly time frame chart displays an established downtrend, the latest reversal from the resistance trendline is struggling to breach the last swing low support. Over the past six months, the XRP price has retested the $0.316 support several, indicating the buying activity is intense at this support.
Thus, this high accumulation zone may bolster buyers to push the prices higher and break the above trendline.
Bullish Divergence In RSI Indicator
The Relative Strength Index (RSI) measures the speed and magnitude of recent price movement, indicating underlying strength. Furthermore, the RSI slope surged higher for the price action hitting the same $0.316 support, indicating the rising bullish pressure.
Thus, this bullish divergence also increases the possibility of a bullish reversal from the $0.316 support.
Current Price Action
It seems this altcoin price is gradually narrowing between the falling trendline and strong support of $0.316. As day pass, this range keeps getting narrower and may soon be considered a no-trading zone.
However, the XRP price currently trades at $0.34, and it should eventually break either of the mentioned levels. The potential breakout will release the trapped momentum and shoot a directional rally on the breakout side.
- Resistance Levels: $0.41 and $0.55
- Support Levels: $0.316 and $0.2345
The post 3 Reasons To Buy Ripple(XRP) This New Year appeared first on CoinGape.
