XRP Price Analysis: XRP/USD Might Be Nearing a Breakout

On July 15, it reached lows of $0.3. Will XRP begin a reversal soon? Keep reading below in order to find out. For our previous analysis, click here.

XRP Price: Trends and Highlights for July 15

• XRP/USD is trading inside a symmetrical triangle.
• It is trading inside a short-term descending wedge.
• There is bullish divergence developing in the RSI and the MACD.
• The 10- and 20-hour moving averages are close to making a bullish cross.
• There is resistance near $0.35.

XRP Price in a Symmetrical Triangle

A look at the daily time-frame shows that the XRP price has been trading inside a symmetrical triangle since August 2019. At the time of writing, it was trading very close to the support line. The line has significant validity since it has been touched five times. A closer look at the price shows that XRP is also trading inside a descending wedge. Continued decreases at the rate predicted by the wedge would have the XRP price reach the support line of the triangle by July 17. Let’s take a look at some technical indicators to see if that is likely.

Technical Indicators for the XRP Price

The divergence is more significant and has existed for a longer time in the RSI. It is present up until the six-hour time-frame. The fact that it is occurring inside a bullish pattern further affirms its validity. A look at the moving averages (MA) gives us a timeline for when a breakout might occur.

The 10- and 20-hour MAs are very close to making a bullish cross. Furthermore, the XRP price is trading above both of them. The use of these indicators makes it likely that the price will break out from the descending wedge. Additionally, the movement of the MAs suggests that the move will transpire soon.

Reversal

If a breakout occurs, we need to know the likeliest place that can provide a reversal. In order to do that, we used a Fibonacci retracement tool from the beginning of the decrease on July 9 at $0.4. The closest resistance area is found between $0.35 and $0.36. The $0.35 level was reached on July 12, before the XRP price began a downward move and created the resistance line of the wedge. According to our analysis, it is likely that the price will reach this area.

Summary

The XRP price is trading inside a descending wedge. According to technical indicators, it is likely that the price will eventually break out from the wedge and reach the resistance area outlined above. Do you think the XRP price will break out from the 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.