XRP Targets Range High After Breaking Out

XRP Price Highlights

• XRP broke out from a descending wedge.
• There is resistance at 3250 satoshis.
• There is support at 2950 satoshis.
• Technical indicators are bullish.

Trader @TraderX0X0 tweeted an XRP price chart in which the price is following the Wyckoff distribution movement he has previously outlined. If XRP continues to do so, it will reach the range high sometime in April. https://twitter.com/TraderX0X0/status/1227550817466626049 Let’s take a closer look at the XRP price movement and determine if the price will get there.

Descending Wedge

On February 4, the XRP price broke out from a descending wedge. It reached a high of 3040 satoshis before decreasing and validating the breakout line on February 11. Since then, the price has created two daily bullish engulfing candlesticks in a row. The main resistance area is found at 3250 satoshis, an area that the price has reached and created a long upper wick after doing so, while the 2950 area is expected to act as support. Therefore, we could see the price trading in a range between these two areas before eventually breaking out. Technical indicators provide a bullish outlook. Firstly, the XRP price has finally moved above its 200-day moving average (MA), which had been providing resistance for the entire duration of the wedge. Secondly, the aforementioned bounce on the support line also validated the 50-day MA as support. This MA has turned upwards and if it continues with the current slope, it will soon make a bullish cross with the 200-day MA — confirming that XRP is in an upward trend. Finally, the RSI acted almost in an identical manner, since it bounced on the 50-line on February 11 and has been increasing since.

Wyckoff Distribution

In our previous analysis, we stated that the XRP price movement could be explained by using the Wyckoff distribution. While the increase occurred slightly faster than expected, the price movement still falls within our parameters. If XRP continues following the distribution, it should create the final higher low at the “last point of support” near the support area of 2950 satoshis sometime in March — before the rate of increase accelerates considerably. If so, that would present the optimal level to enter the trade before XRP moves towards the top of the range. To conclude, the XRP price has been increasing since February 11. We believe this increase is a part of the Wyckoff distribution and the price will eventually move above the range high of 3600 satoshis.