XRP consolidates near $1.04, forming a descending triangle with key support at $0.92 and resistance beyond $1.20.
Analysts predict a dip to $0.92 before a potential breakout above $1.28, signaling bullish momentum mid-week.
The market awaits XRP’s next move as the triangle apex nears, indicating potential volatility amid selling pressure.
The descending triangle that the XRP/USD pair is still consolidating within suggests that there may be short-term market disruption. With sell and buy indications showing small spreads around $1.04491 and $1.04519, XRP has dropped 6.70% and is currently trading at $1.04466 on Bitstamp. Analyst CryptoBull2020 highlights the falling wedge formation, hinting at a possible bullish breakout.
Bearish Momentum Dominates Short-Term Trends
XRP’s price action reveals lower highs and a consistent support level, reinforcing bearish sentiment. The descending triangle reflects selling pressure, with XRP hovering near its lower boundary. Moreover, the recent peak above $1.30 was short-lived, giving way to a steady decline. Prices now approach key support around $0.92, with the possibility of dipping to $0.86 if the bearish trend continues.
Source: CryptoBull2020
Besides, traders are closely monitoring the approaching apex of the triangle for breakout confirmation. Significantly, if buying pressure surges, a breakout above $1.20 could reverse the bearish momentum. However, failure to hold support might lead to further losses.
Anticipating a Breakout
Key technical indicators such as the Relative Strength Index (RSI) and volume data remain unavailable, limiting deeper analysis. However, the triangle's structure and XRP’s proximity to its apex indicate an imminent breakout. Additionally, the marked U.S. flag near November 20 suggests potential market-moving events, possibly tied to economic or regulatory developments.
Consequently, market participants are bracing for directional moves. If the price breaches resistance beyond $1.20, bullish momentum could resume. Conversely, a bearish breakdown below $0.92 might signal extended downside action.
Moreover, CryptoBull2020 projects XRP falling to $0.95–$0.92 before rebounding to break $1.28 mid-week. Hence, traders remain vigilant for shifts in sentiment and key support tests.
The post XRP Nears Key Support as Descending Triangle Hints at Imminent Breakout appeared first on Crypto News Land.
