XRP joined the list of top performers in January as the crypto market recovered widely. But the 6th largest crypto asset has been on a steady downtrend after it kissed $0.0432 last month.
Many factors including the Ripple-SEC case and the formed flag pattern on the chart, fueled this bearish reversal seen on the XRP chart.
Notably, the intensity of the decline in XRP price became more visible last weekend when the asset printed the 12th red candle in a row against the total crypto market, on a one-week chart. The first time this happened since March 2015.
Amid the existing bearish trend in the price of XRP, the asset is expected to stage a bullish reversal, breaking out of the flag pattern. But as seen on the chart, the XRP price is still trading below the trendline, indicating a protracted dip.
A closer look at the chart shows a long green daily candle with sufficient volume. If this daily candle closes above the trendline then, a mild bull run could be recorded for XRP. The potential target would therefore be $0.42, $0.432, $0.476, or $0.5.
Technical indicators including the Bollinger Band (BB) and Moving Average Convergence Divergence (MACD) further imply a bullish outlook for XRP.
It bears noting that the XRP price went above the Bolinger Bands’ midline. This suggests that buyers are trying to take over. On the other hand, the MACD (blue line) and signal (orange line) went sideways despite a breakdown below the neutral line. By implication, the bearish trend on XRP is getting weak, signaling a potential upward breakout.
Also putting into consideration that John Deaton reiterated his confidence that Ripple would defeat the SEC even at the Supreme Court level, could this be the right time to accumulate XRP?
Follow us on Twitter, Facebook, Telegram, and Google News
