On July 17, 2019, the XRP (XRP) price reached a low of $0.285. An upward move ensued. The price reached highs above $0.34 on July 20. Since then, it has been decreasing, trading inside a range between $0.30 and $0.33.
Will XRP break out from this range? If you want to know the answer, continue scrolling.
For our previous analysis, click here.
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XRP Price: Trends and Highlights for July 31
- XRP/USD is following a descending resistance line.
- It has moved above the daily moving averages.
- It is trading inside a long-term symmetrical triangle.
- Short-term bearish divergence has developed in the RSI.
- There is support at $0.304.
Descending Resistance
A look at the two-hour time-frame shows that XRP has been following a descending resistance line.
The line acted as support in the period from June 24 to July 7, before the price broke down.
Afterward, it was validated as resistance on July 20 and 27.
At the time of writing, the XRP price was at the resistance line for the third time.
Will this one prove to be successful?
Let’s take a look at a longer-term time-frame to see if that will occur.
Long-Term
A look at the daily time-frame shows that XRP has been trading inside a symmetrical triangle since August of 2018. At the time of writing, the price was trading slightly above the support line.
Additionally, the support line has been touched five times.
Combined with the length of time it has been in place, this makes the line very significant and unlikely to be broken without giving a reaction.
Additionally, a look at the relationship between the Ripple price and moving averages (MA) suggests that the price might soon increase.
XRP has moved above the 10- and 20-day MAs.
However, they have yet to make a bullish cross.
If one occurs, it would confirm the uptrend, and movement towards the resistance line of the triangle would be likely.
This view is supported by a closer look at daily candlesticks.
A support area has been created below $0.307.
The XRP price has reached this area multiple times.
Every time it has done so, upward moves have ensued, creating long lower wicks.
This indicates that there is significant buying pressure inside this area.
So, while we believe a breakout will occur, we do not yet know when.
Let’s go back to the short-term outlook to see when that will happen.
Future Movement
In order to predict short-term movement, we have used the hourly RSI.
We can see that the Ripple price has been generating bullish divergence for the past 24 hours.
The divergence is significant and is occurring very close to the resistance line.
This makes us believe that a short-term decrease will occur before the eventual breakout.
An outline of possible future movement is presented below.
XRP Price Summary
The XRP price has reached the descending resistance line. According to our analysis, it is likely to break out above it. However, a short-term decrease should occur before the breakout. Do you believe XRP will reach the support 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. Images are courtesy of TradingView and Shutterstock.
