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XRP price has entered into another consolidation pattern following its break below $2.4 over the weekend. Now, this is nothing new for XRP, which has previously gone on years-long consolidations before now. Just like before, the current consolidations seems to be preceding something bigger and this move could send the altcoin soaring toward new all-time highs.
XRP Price Still Holding Above Key Support
In an analysis, “Dennishhrndz” showed where the XRP price is currently sitting and the factors that are surrounding the altcoin right now. Firstly, he explains that the cryptocurrency is still trading above a long-term rising trend line. Furthermore, there is tight consolidation in a bullish compression patter, which he likened to a classic “coiled spring.”
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Not only this, but over the last six months, the XRP price has also been putting in higher lows, a development that is bullish for the price of any cryptocurrency. Since XRP is maintaining this trend, it suggests that there is still bullish firepower despite the price decline. Add in the fact that it is still trading above a very important trendline support, XRP is showing that its uptrend is far from over.
The trendline support here is sitting at $2, and with the XRP price still skirting around $2.3, it is still more than 10% away before testing this support level. Inversely, the major resistance outlined by the crypto analyst is one at the $2.7 level. This suggests a run-up before the XRP price encounters any major pushback.
Other important developments to note is the fact that the RSI is now sitting in a neutral position. At a 50.88 RSI, give or take, it means that the RSI is resetting. This gives it a fresh start and a bounce board that could help it take off toward the next major level.
The MACD is also seeing a bullish crossover as the momentum has been rising slowly during this time. This also follows the decline in the trading volume. Now, low trading volumes often signal bearish control but they also serve as a signal leading up to breakout patterns.
When To Get In
Given the developments outlined by the crypto analyst, he gives two major buy levels. The first one here is the $2 to $2.2 zone. This is where support for the XRP price lies and serves as a buy zone. Meanwhile, the second level to get in is after the break above $2.7 with strong volume, which would signal continuation.
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Such a break above $2.7 would allow the XRP price to rally towards its true targets. First is a run-up to $3.50, and then the crypto analyst sees a shot to $5. “The longer this consolidates above trendline support, the stronger the breakout move will be,” the analyst said.
Featured image from Dall.E, chart from TradingView.com
