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Ripple (XRP) Bulls Are at a Turning Point.

April 13, 2021

Talking Points: 

  • XRP broke out of a bull pennant on the 10th of April, with a target of 1.58 USD.
  • If buying pressure continues, XRP could rally by another 16% to 1.68 USD.
  • The Momentum Reversal Indicator (MRI) highlights the creation of a cycle top on the 12-hour chart indicating a likely downwards move.

XRP has been on the move of late after tripling since the end of March. However, looking at the whole of the crypto market which has witnessed a period of celebration we could see it being overextended, and therefore the crypto asset may be due for a correction.

XRP Price Movement Remains Unclear.

XRP spiked 100% from the 4th of April to the 6th of April, forming a flag pole. The consolidation that followed formed a pennant that together has created a bull flag pattern.

The technical pattern would suggest a 50% upswing, this is calculated by measuring the flag pole’s height and adding it to the breakout point. This consolidation witnessed a breakout on the 10th of April at 1.05 USD, which was the catalyst for a new upswing towards 1.58 USD. 

Since the break out from the pennant pattern, XRP has rallied by almost 42% to 1.50 USD but was unable to hit its goal of 1.58 USD. If the crypto asset manages to build up bullish momentum, we could see it head towards the supply barrier at 1.68 USD, created by the MRI breakout line.

 

XRP/USDT 4-Hour, 12-Hour Chart:

The bullish price action that saw XRP more than triple appears to have wained, as it enters a consolidation period. Additionally, the MRI has indicated a cycle top in the form of a red-one candlestick on the 12-hour chart, suggesting a one-to-four candlestick correction.

Therefore, a potential increase in selling pressure could drive XRP towards the 78.6% Fibonacci retracement level at 1.16 USD. This could result in a 19% downswing.

Continuing on the downward route If XRP is unable to absorb the bearish momentum, XRP could witness additional declines of up to 13% and towards the MRI’s State Trend Support at 1 USD.

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