Ripple (XRP) has captured the attention of traders and investors alike as it navigates through a prolonged descending wedge pattern. Currently, the price has reached the upper boundary of this formation, but the bullish momentum appears insufficient. As it stands, market expectation suggests continued consolidation within this pattern until a valid breakout materializes.
The Daily Chart
Ripple is entrenched within a longstanding descending wedge pattern, oscillating between the $1.6 and $3.3 price levels. This formation indicates a period of diminishing volatility but also serves as a potential precursor to a major price movement. Recently, XRP dipped below the critical psychological support level of $2.0. This dip triggered a liquidity response, activating sell-side stop orders, resulting in a quick bullish rebound. Currently, the price is testing the $2.4 resistance zone, which aligns with the wedge’s upper trendline.
Despite this recent uptick, the bullish momentum remains tepid. The current movement lacks the vitality needed for an immediate breakout; unless XRP decisively surges above $2.4, it is likely to remain bound within the confines of the wedge. A confirmed breakout above this structure could signify a trend reversal, potentially opening up a pathway for a rally towards the significant $3 resistance zone.
The 4-Hour Chart
Zooming in on the 4-hour chart, XRP is developing a descending channel structure reminiscent of a potential bullish flag – a pattern commonly observed following an upward trend. Recently, the price bounced off the channel’s lower boundary, signaling buyer interest and accumulation at the current price levels. This upward rebound has seen XRP rally above the midline of the channel before retreating slightly to retest it, which further validates the strength of buyer sentiment.
Following this healthy retest, XRP has surged once more and is knocking on the upper boundary at around $2.2. If the price achieves a breakthrough through this resistance, it would validate the bullish continuation pattern, propelling XRP towards the $2.4 region, where a more formidable resistance awaits.
The post Ripple Price Analysis: XRP En Route to $2.4, Here’s The Real Target appeared first on CryptoPotato.
