XRP Price Analysis: When Will XRP/BTC Break Out?

It has been gradually increasing since. Will XRP increase above 3000 satoshis? Below, we are going to analyze the XRP price in different time-frames alongside technical indicators in order to answer this question.

XRP Price: Trends and Highlights for July 16

• XRP/BTC broke down from an ascending support line.
• There is support at 2850 satoshis.
• It is trading inside a long-term descending wedge.
• There is bullish divergence developing in the short- and long-term.
• Moving averages are providing resistance to the price.

Previous XRP Price Movement

On July 11, XRP reached a low of 2777 satoshis. A gradual upward move ensued. Since then, the XRP price has been following an ascending support line. On July 15, it broke down from the support line. The decrease stopped temporarily inside the support area at 2850 satoshis. From there, the XRP price seemingly began an upward move.

Potential Upward Move

On July 11 and 16, XRP reached lows of 2850 satoshis. During this time, however, the RSI and the MACD both generated higher values. This is known as bullish divergence and often precedes price increases. If it does, where will the XRP price head to next?

Descending Wedge

A look at the daily time-frame shows that since the beginning of June, XRP has been trading inside a descending wedge. Additionally, similar to the short-term time-frames, XRP has been generating bullish divergence. The divergence, however, is only present in the RSI. However, it gains more validity since it is occurring inside a bullish pattern. A look at the moving averages (MA) shows that the XRP price has already made several attempts at a breakout. Each time, however, the upward moves stopped once they reached the 10-day MA. (On July 2, XRP briefly traded above the 10-day MA before immediately dropping.) This indicates that even though momentum indicators suggest that the XRP price will soon initiate an upward move, there is very significant resistance above once it does so.

Long-Term Support

A look at the weekly time-frame shows that XRP is trading at levels not reached since the beginning of 2018. At the time of writing, it was approaching the support area at 2000-2200 satoshis. A breakdown below it could trigger rapid price decreases with a target set below 1000 satoshis. However, due to the fact that XRP has generated bullish divergence inside a bullish pattern, we believe this to be unlikely.

Summary

The XRP price has been increasing since July 11. Momentum indicators support a  breakout from its current long-term pattern. There is no clear timeline yet for when that will transpire. Do you think the XRP price will break out from the descending wedge? Let us know in the comments below.

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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 Shutterstock, TradingView.