On August 4, 2019, the XRP price reached a high of 3023 satoshis. A gradual decrease followed until August 9, when the price made a low of 2467 satoshis. It has been increasing since then.
At the time of writing, it was trading slightly above 2600 satoshis.
Where will the XRP price go next? Continue reading if you are interested in finding out.
For our previous analysis click here.
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XRP Price: Trends and Highlights for August 13
- XRP/BTC broke out from a short-term descending channel.
- It is trading inside a long-term descending channel.
- There is a bullish divergence in the MACD.
- Short-term moving averages have made a bullish cross.
XRP Price in a Descending Channel
A closer look at price movements reveals that XRP broke out from a descending channel on August 10.
Since the breakout, it has traded close to 2600 satoshis, without experiencing significant fluctuations.
Using a Fibonacci retracement tool from the beginning of the decrease, we can see that the XRP price has struggled to retrace above the first (0.236) fib level.
Additionally, we can see that this level coincided with the 200-hour moving average.
XRP is facing extremely close resistance from the MA.
While it is customary for a price retracement to reach at least the 0.382 fib level, the low levels of volume of the breakout, the lack of bullish divergence, and the resistance offered by the MA make us skeptical of the bullish potential of the price.
Let’s take a look at a different time-frame to see if it gives us a clearer view.
A look at the daily chart shows that XRP has been trading inside a descending channel since the beginning of July.
On August 6, the XRP price touched the support line of the channel before increasing rapidly — generating a long lower wick, a sign of buying pressure.
The previous time the XRP price touched the support line, on July 11, an upward move towards the resistance line ensued.
The resistance line is currently at 2800 satoshis. This price coincides with the 0.382 fib level from the first section.
Interestingly, the RSI had almost identical values (24 and 25, respectively) on these two dates:
Furthermore, the MACD has been generating bullish divergence, supporting a similar increase towards the resistance line.
Also, since the RSI has generated the same values while the XRP price has been decreasing, this can be considered an instance of bullish divergence, albeit a small one.
A look at moving averages gives a slightly ambiguous outlook on whether the upward move has begun.
On the left side of the graph, we have the daily moving averages. We can see that the price is trading below both, facing close resistance from the 10-day MA.
However, the right side (6-hour) shows that a bullish cross has already occurred.
This is an indication that while XRP has begun to initiate an upward move, it has not been sufficient enough to be visible in the daily time-frame.
To conclude, while we are leaning on a bullish outlook, in which XRP moves towards the resistance line, we cannot say with certainty that it will.
Rather, it is possible that it will be affected by the price of BTC.
An upward move or further consolidation would allow XRP to increase, while a decrease in BTC would most likely do the same for XRP.
XRP Price Summary
The XRP price broke out from a short-term descending channel, and it is trading inside a longer-term one.
According to our analysis, it is likely to move towards the resistance line at 2800 satoshis.
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.
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