Ripple’s XRP token has bounced off a crucial support level, posting 16% gains.
Now, it has reached a critical resistance barrier that may lead to rejection.
A spike in profit-taking could push the asset to $1.17 before the uptrend resumes.
Share this article
Ripple’s XRP token appears to be enjoying the weekend as it has gained over 0.17 points in market value. Although the technicals point to a correction soon, it could be short-lived as the network activity favors the bulls.
XRP Primed to Retrace Before the Uptrend Resumes
XRP has enjoyed a rally in the last two days. The sixth-largest cryptocurrency by market cap has surged by nearly 16%, recently reaching a high of $1.23.
The sudden bullish impulse could have been anticipated as XRP approached the lower trendline of an ascending parallel channel, where its price has been contained since Sep. 25 on the four-hour chart.
Every time the asset has risen to this technical formation’s upper boundary since then, it has been rejected and retraced to the pattern’s lower edge. From this point, it tends to rebound, which is consistent with the characteristics of a parallel channel.
Now that XRP has reached the channel’s upper trendline, it is reasonable to assume that a correction is underway toward its middle or lower trendline. These crucial areas of support sit at $1.17 and $1.14 respectively.
The Tom DeMark (TD) Sequential indicator adds credence to the short-term pessimistic outlook. It is currently on a green eight candlestick, anticipating the development of a sell signal in the form of a green nine candlestick. The bearish formation is indicative of a one to four candlesticks correction before the continuation of the uptrend.
Network Activity Points to Higher Highs
Although the technicals point to a brief correction before continuing the uptrend, the activity on the network favors the bulls.
Market participants seem to be re-entering the market, as reflected in the recent spike in network growth. This on-chain metric considers the number of new addresses being created on the network each day to determine whether a project is gaining or losing traction.
The steady rise in network growth even after the 39.5% correction XRP suffered in early September suggests increased user adoption over time. Usually, when this metric expands for a prolonged period, rising prices tend to follow.
Given that network growth is often regarded as one of the most accurate forecasters of price, further uptrend continuation cannot be taken out of the question.
A decisive four-hour candlestick close above the channel’s upper trendline at $1.24 could invalidate the short-term bearish outlook. Under such unique circumstances, XRP could jump toward $1.30 or even $1.42.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
XRP Unfazed by New Turn in SEC vs. Ripple Case
While Ripple’s legal battle against the Securities & Exchange Commission (SEC) continues, the XRP token shows signs of consolidation. SEC vs. Ripple Takes New Turn Ripple takes another loss against…
Ripple Wants SEC Members to Reveal XRP Holdings
Ripple’s legal team has filed a motion that aims to compel members of the U.S. SEC to disclose their XRP holdings. SEC Members May Need to Disclose Holdings If successful,…
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…
Ripple CEO Granted Access To Binance XRP Docs
Brad Garlinghouse, CEO of Ripple, has been granted to seek data on XRP transactions from Binance. Court Grants Motion To Obtain XRP Documents The CEO of Ripple has been approved…