XRP Price Analysis: Double Bottom Spotted for XRP/BTC, Targeting 3000 Satoshis

Will the XRP price initiate another upward move or will it continue to decrease? Keep reading below if you want to find the answer. For our previous analysis, click here.

XRP Price: Trends and Highlights for September 23

• XRP/BTC is following an ascending support line.
• It has made a short-term double bottom.
• There is support at 2700 satoshis.
• The support area coincides with the 25-day moving average.
• There is resistance at 2900 and 3050 satoshis.

Previous XRP Price Movement

Looking closer at the price movement we can see that XRP recently broke out from a descending wedge.   The breakout transpired on September 21. The movement was unsuccessful and XRP resumed its downward movement the next day.

Ascending Support

Looking at a slightly longer time period, we can see that XRP is following an ascending support line. Additionally, it looks as if the XRP price has attempted to initiate a reversal at the 0.786 fib level of the entire upward move near 2700 satoshis. Since this level coincides with the ascending support line, it makes it a very suitable level for the initiation of a reversal.

Double Bottom

Zooming into the XRP price movement, we can identify a short-term double bottom, which is considered a bullish reversal pattern. Additionally, it is combined with a bullish divergence in the RSI. Since the divergence is only present in short-term time-frames it is not sufficient in predicting a reversal in itself. However, combined with the ascending support line and fib support we can assume that XRP will begin to increase at the rate predicted by the support line.

Reversal Areas

Looking at the six-hour time-frame we can outline one support area which is found at 2700 satoshis. Additionally, its significance is strengthened once we incorporate the moving average (MA) into the analysis. The area corresponds with the 100-period MA. It previously acted as resistance on and before the price moved above it on. Now, it is very likely that XRP uses it as support in order to initiate an upward move.

Future Movement

An outline of possible future price movement is given below, along with two resistance areas. They are found at 2900 and 3050 satoshis, respectively. We believe the XRP price will increase at the rate predicted by the ascending support line, and reach at least one of the resistance areas.

XRP Price Summary

The XRP price is following an ascending support line. According to our analysis, it is likely to continue increasing at the rate predicted by the support line. For hypothetical trading purposes, we consider XRP a buy at the current price near 2700 satoshis. Do you think XRP will reach the first resistance area? What about the second? 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.