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On September 6, 2019, theprice reached a low of 2366 satoshis. It soon began an upward move and reached a high of 2560 after two days. It traded near this level until September 16, when a rapid breakout ensued. XRP increased by roughly 20% in less than two days, reaching highs above 3000 satoshis.
How long will this increase continue for XRP? Keep reading below if you want to find out.
For our previous analysis, click here.
The rapid increase discussed in the introduction triggered a bullish cross in the weekly MACD.
A bullish cross has occurred twice since September of 2017.
The first time, an increase of 1600% followed, while a smaller increase of 170% occurred the second time we saw a bullish cross.
An increase of 170% from the current weeks opening prices would take us to 7000 satoshis.
A look at the daily chart shows that XRP had been following a descending resistance line since July 1st.
On September 17, XRP broke out.
It is in the process of creating the second daily bullish engulfing candle, indicating that the rally has significant strength.
Furthermore, we have traced one resistance area.
It is found at 3350 satoshis.
This area also coincides with the 100-day moving average, reinforcing its significance.
Let’s take a look at the short-term movement and see if the price will get there.
Looking at the hourly chart, we can see that the upward move transpired with very significant volume.
Additionally, we can see that the RSI has been generating bearish divergence.
However, the divergence is not present in longer-term time-frames.
Finally, the price has not created any type of bearish reversal pattern, such as a double/triple top or a shooting star.
Therefore, while it would be customary for some retracement, we are not ruling out a continuing increase to 3350 satoshis without any retracement.
Whichever the case, we believe that XRP will eventually reach the resistance area.
The XRP price recently broke out above a descending resistance line.
According to our analysis, it is likely to eventually reach the resistance area at 3350 satoshis.
For hypothetical trading purposes, even though we believe that XRP will increase, the extremely steep slope of the upward move makes it impossible to initiate a profitable trade at the current price level.
If it were to retrace, XRP would be considered a buy closer to 2800 satoshis.
Do you think XRP will reach the resistance area? 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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