XRP Price Analysis: XRP/BTC Showing Signs Of a Possible Breakout

Will the XRP price initiate a reversal or will the downward move continue? Keep reading below if you want to find out. For our previous analysis, click here. If you are interested in trading 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 21

• XRP/BTC is trading inside an ascending triangle.
• The 20- and 40-hour moving averages have almost made a bullish cross.
• The weekly RSI has generated bullish divergence.
• There is support at 2500 satoshis.
• There is resistance at 3000 satoshis.

XRP Price in an Ascending Triangle

A closer look at price movement shows that XRP has been trading inside an ascending triangle since August 7. Both the support and resistance lines have been validated several times — increasing the significance of the pattern. At the time of writing, the XRP price was trading slightly above the support line. A look at the moving averages (MA) supports a price increase towards the resistance line. The 10- and 20-period MAs are very close to making a bullish cross. After the previous instances of this happening, upward moves towards the resistance line have followed. At the time of writing, this looks likely. However, in order to predict whether a breakout is possible, we need to take a look at a long-term time-frame.

Long-Term

A look at the weekly time-frame shows that the XRP price is trading inside a very significant support area. The area is found at 2500 satoshis. Additionally, we can see that the RSI has been generating bullish divergence since the beginning of May. Divergence in the RSI in a weekly time-frame is uncommon and makes us believe that the XRP price will eventually begin an upward move. This makes it likely that it will break out from the short-term triangle discussed in the first section.

Reversal Areas

In case XRP breaks out, one resistance area is outlined below. It is found at 3000 satoshis. According to our analysis, the XRP price will eventually reach this area. However, it is likely to continue trading inside the confines of the triangle for a period of time before ultimately breaking out.

XRP Price Summary

The XRP price is trading inside an ascending channel. We believe that it is likely to reach the resistance line and eventually break out. Due to the price being at a very significant support area, XRP/BTC looks like a potential buy and hold for a possible future upward move. Do you think the XRP price will break out from the triangle? 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.