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Amid the ongoing correction sentiment in the crypto market, the falling XRP coin price revealed the formation of a flag pattern. The concept behind the flag pattern is rooted in the idea of trend continuation. The pattern is formed when a strong price movement in one direction is followed by a period of consolidation, which often encourages a further continuation of the original trend. Thus, the Ripple price is currently in the aforementioned consolidation awaiting a price breakout.
Key points:
- The XRP price will continue its downfall ward journey if it stays within the channel structure of the flag pattern
- A bullish breakout from the pattern’s resistance trendline could set XRP coin for a 30% jump
- The intraday trading volume in the XRP is $527.5 Billion, indicating a 59.5% gain.
Source- Tradingview
During the January 2023 recovery, the XRP coin price reached a two-and-half-month high of $0.433. However, with the increasing uncertainty in the crypto market, the coin price turned down from the aforementioned resistance.
The series of lower highs and lower lows indicates sustained selling in the market. However, the bearish pullback is a part of the mentioned flag pattern. During this period of consolidation, the market participants are taking a pause to replenish the bullish trend, which can result in reduced volatility and lower trading volume.
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By press time, the coin price traded at the $0.38 mark and showed reversal signs at combined support of the downsloping trendline and $0.371. Thus, with this bullish reversal, the XRP may make temporary gains in the upcoming days.
However, under the influence of the flag pattern, the XRP coin price is more likely to break the overhead trendline. The potential target for this pattern is the total length of the flagpole shot from the breakout points.
Thus, the post-breakout rally from the resistance trendline may push the XRP price beyond the $0.433 barrier to hit the $0.5 ceiling.
Technical Indicator
EMAs: With the recent sell-off in the crypto market, the Ripple price losses support 20-50-and-100-day EMA offering an extra edge to the sellers’ side.
MACD: the MACD(Blue) and signal(orange) lines falling with an increasing gap between them accentuate a sustained selling activity in the market and a higher possibility of a prolonged correction phase.
XRP Coin Intraday Price Levels
- Spot price: $0.382
- Trend: Bullish
- Volatility: High
- Resistance level- $0.395 and $0.443
- Support level- $0.374 and 0.33
The post New Bullish Pattern Hints XRP Coin’s Next Recovery Rally May Reach $0.5 appeared first on CoinGape.
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