Ripple (XRP), the 6th largest cryptocurrency by market cap, has been decreasing inside a descending parallel channel since 6th September. Such channels are considered corrective patterns, which implies that a breakout from the channel is most likely.
Hitherto, the downward movement has led to a low of $0.55 on 22nd January, validating the support line of the channel.
Read Also: Anon Whales Moved 222 Million XRP as Ripple Withdraws 1 Billion XRP from Escrow
Afterward, the price initiated an upward movement and reclaimed the $0.70 horizontal area. It returned to validate it as support on 28th February before bouncing once again.
If XRP price breaks out from the channel, the next resistance area is likely to be at $1.35.
Could XRP Breakout Ever Occur?
Although technical indicators in the daily timeframe are leaning on bulls, they are mixed. The reason for this is that both the RSI and MACD are moving upwards. Howbeit, the RSI hardly stays above 50 and the MACD is still at the 0 line. Movements above these levels are required so that XRP trend can be considered bullish.
However, the 6-hour chart shows the bullish potential of XRP more.
The chart shows that XRP has broken out from a descending resistance line after the fourth attempt, which is indicated by the red icons. It currently seems to be in the process of validating the line as support.
This indicates that there is a possibility for XRP to increase towards the resistance line of the channel and potentially break out.
Read Also: Credible Crypto Says XRP Is Ready To Take Out Next Resistance, Sets Price Target
What Wave Count Analysis Says About the Trend of XRP?
A cryptocurrency trader and analyst, known on Twitter as Crypto Tony, tweeted a chart of XRP, stating that a correction is complete and a new high will follow.
Crypto Tony tweeted, “$XRP / $USD – Update What I am looking for on XRP right now… Must hold above the demand zone at 0.68, in order for advances up to 0.85 and 0.95.”
What I am looking for on XRP right now .. Must hold above the demand zone at 0.68, in order for advances up to 0.85 and 0.95
— Crypto Tony (@CryptoTony__) March 1, 2022
The decrease measuring from 9th February does seem to be an A-B-C corrective structure. However, it isn’t clear what the preceding upward movement could be.
In any case, if the ongoing increase has the same length as the initial one, which is common, XRP would reach a high of $1. This would take it to the resistance line of the long-term channel.
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