Following an extended period of uncertainty and consolidation, XRP has approached the narrow range of its multi-month triangle. The mid-term outlook of XRP will be determined by a breakout from this triangle, while the current price action suggests a bearish trend.
By Shayan
On the daily timeframe, XRP has been forming a symmetrical triangle pattern and has now reached the narrow range of the triangle. However, the cryptocurrency was recently rejected by the 200-day moving average at around $0.4, indicating a bearish sentiment in the market.
Despite all this, the price has since fallen and is now facing the lower trendline of the triangle, which serves as a strong support level. In case of a breakout, a shakeout towards the $0.32 support level will be expected.
Following an impulsive downtrend, XRP is currently in a correction phase and has formed an ascending price channel. The cryptocurrency was recently rejected by the channel’s middle boundary and has experienced a slight decline, reaching the lower threshold.
The lower threshold of the channel has already provided support to the price twice, making it a crucial level to monitor. If the price falls below this level, traders should expect another downtrend toward the next support level of $0.3.
However, there is also a possibility that the trendline will support the price and initiate a short-term uptrend towards the middle boundary of the channel. Nevertheless, it’s important to consider all possible scenarios in order to manage risks effectively since the cryptocurrency market can be unpredictable.
