In a fresh short-term price forecast for XRP, a crypto expert has indicated that there is a possibility of an increase in price in the event that the price is able to overcome a significant technical obstacle. It is possible that a short-term buy signal might be triggered by a trend channel breakthrough on the 12-hour chart of the XRP/USD trading pair, which is the subject of this analysis.
The Price of XRP Is About to Breakout?
The cryptocurrency expert claims that the price has been consistently moving within a descending channel (DC) during the past few days. Now, XRP is at a crossroads that has the potential to have a substantial influence on the price of the cryptocurrency. This structure has been recognized by Egrag as a "DC B," which is a bearish pattern in which the asset has created lower highs and lower lows simultaneously.
Interactions between XRP and this pattern are going to be a primary focus of the investigation. Two times since the beginning of the chart pattern, the price has made contact with the higher trend line, which acts as resistance, and twice it has made contact with the lower trend line, which acts as support.
At the moment, the price of XRP is nearing the point where it will retest the top line of the trend channel for the third time. In the event that it is successful in breaking out of the downtrend channel, this would be a very positive indication for the market. The price was already in a descending channel by the middle of July and continued to remain in that channel until the end of October. Egrag refers to this channel as "DC A" in the chart.
Following XRP's exit from the downward channel A, the price saw a surge of more than fifty percent. In the event that history repeats itself, something like may occur right now. The explanation provided by Egrag was as follows: "XRP appears to be replicating its prior price action within a descending channel (DC). See how the price is attempting to break out of the DC B pattern by looking at the chart that is provided below. In order for XRP to hit Fib 0.5, the next obstacle that it must overcome is to exceed descending channel B.
From Here on Out?
The next key resistance level on the chart would be the 0.5 Fibonacci retracement level, which is located at $0.7529, in the event that a breakthrough is successful. An upward breakout above this level may signify the beginning of a trend reversal, which may cause the price to move closer to the range of $1.30 to $1.50.
"A breakthrough that occurs beyond the 0.5 Fibonacci level indicates that upward momentum is there, indicating a transition from a downward trend to a possible rising trend, which instills confidence within the market. [...] "Pay close attention: Fibonacci 0.5 at a price target of 0.7529c could be the gateway to a potential move towards 1.3-1.5$," Notes, indicating that such a move would be a significant indication for traders. "Pay close attention to this."
According to the conclusion, it is recommended to investors that they keep a close eye on the trading volume and the general tone of the market, as these aspects will play a significant role in determining whether or not the asset is able to reach and beyond these critical levels.
