XRP Technical Analysis: Price Resonates Within Descending Triangle

Vikram  |  Oct 25, 2021

XRP coin price action forms a descending triangle pattern in the 4-hour chart, which will shortly give a trend decisive breakout.

XRP is the cryptocurrency that runs on RippleNet's digital payment platform. It is built on top of a distributed ledger called XRP Ledger. RippleNet's XRP Ledger, which is open-source, is not based upon blockchain but instead uses the distributed ledger database.

Ryan Fugger had originally suggested the Ripple payment platform in 2004, but it wasn't until Jed McCaleb, Chris Larson, and Chris Larson that Ripple was built. (At the time, Ripple was known as OpenCoin).

Let us now take a deep look into the technical analysis of Ripple's cryptocurrency.

Past Performance of XRP

Due to the sudden supply increase near the $1.2 mark, the XRP coin price fell more than 10%. However, the bullish support near the $1 mark has been helpful in an upside retracement. 

Despite this, the XRP crypto price action forms a lower high pattern formation in the 4-hour chart. Thus, resulting in a descending triangle pattern with the base level at the psychological support level of $1.

Furthermore, the price is at the baseline, increasing the bullish intentions to hit the resistance trend line. If the bullish volume rises with the uptrend, we can soon see a bullish breakout.

TradingView Chart

XRP Technical Analysis

At reporting time, the XRP coin price is trading at $1.09, with a price jump of 0.27% in the past day. Furthermore, the trading volume stands at $2.48 Billion with a leap of 16% compared to yesterday.,

The $1.30 mark and the $1.60 mark are the resistance levels that can oppose bull run upon trend line breakout, indicated by the Pivot Points. And on the flip side, the psychological support of $1 can act as a support level followed by the $0.85 level.

The MACD indicator in the 4-hour chart generates bullish signals. Due to the recent bullish crossover of the MACD and sellers line below the central mark.

The RSI indicator projects a rise in bullish sentiments as the slope moves higher to the central line in the 4-hour chart.

Upcoming Trend

As per the technical analysis, the XRP coin price resonates deep into the triangle pattern. Furthermore, the price is at the baseline, waiting for a short-term bullish burst. 

Hence, the chances of a bullish breakout are more than that of its alternative.

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