On August 4, 2019, the XRP price reached a high of 3053 satoshis. A downward move ensued, alternating between sharp and gradual decreases. XRP has made several successive lower lows.
At the time of writing, it was trading close to 2500 satoshis.
Where will the XRP price go next? In order to answer this question, we will analyze the XRP price in different time-frames alongside technical indicators.
For our previous analysis click here.
If you are interested in margin trading Ripple (XRP) and other cryptocurrencies with a multiplier of up to 100x on our new partner exchange with the lowest fees, follow this link to get a free StormGain account!
XRP Price: Trends and Highlights for August 9
- XRP/BTC is trading inside a descending wedge
- The short-term RSI has been generating bullish divergence.
- There is resistance at 2800 satoshis.
- XRP is trading inside a long-term descending channel.
A look at the two-hour time-frame shows that the XRP price has been trading inside a descending wedge since August 5.
The descending wedge is considered a bullish pattern, making price breakouts more likely.
Furthermore, the price has just reached the support line, making it a suitable level for the beginning of an upward move.
A look at the RSI supports this hypothesis since it has been generating bullish divergence for the entire duration of the wedge.
Therefore, we believe that a short-term breakout is on the cards.
Where will the XRP price go afterward?
A look at the daily time-frame shows that the XRP price has been trading inside a descending channel since the beginning of July.
Additionally, the short-term wedge is outlined with a dashed line.
Upon a closer look, we can see that once the price reached the support line, it immediately increased and created a hammer candlestick.
During the ensuing decrease, the XRP price generated the short-term wedge discussed in the first section.
This pattern of price movement furthers our belief that XRP will break out from the short-term wedge.
Trade XRP and other cryptocurrencies quickly and securely on our partner exchange, KuCoin.
If XRP does break out, one resistance area is outlined below.
It is found at 2800 satoshis.
Previously, it acted as support when the price made a low on July 11.
According to our analysis, the XRP price is likely to reach it.
XRP Price Summary
The XRP price has been trading inside a short-term descending wedge and long-term descending channel.
According to our analysis, it is likely to break out from the wedge and reach the resistance area outlined above.
Do you think XRP will begin an upward move? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of TradingView and Shutterstock.