XRP dodged a bullet after a a symmetrical triangle appeared on its chart. A move above the upper trendline allowed bulls to take command and fight for higher ground. By gaining a foothold above an important price barrier of $1.05, XRP can set up a possible comeback to $1.30, provided a few potholes are negotiated. At the time of writing, XRP traded at $1.03, up by 5% over the last 24 hours.
XRP 12-hour Chart
Source: XRP/USD, TradingView
XRP battled past a symmetrical triangle which carried the threat of a near 20% sell-off. A breakout in the opposite direction saw XRP push above its 12-hour 20-SMA (red) and regain some momentum. For now, some tailwinds were present at the confluence of the 50-SMA (yellow) and $1.05 resistance.
Functioning as support earlier, the $1.05 region held strong after multiple attacks over the past few months but bears eventually punctured through during the wider market sell-off on 20 September. While this was a tough nut to crack, a close above this region could have massive upside. An additional 24% surge was possible provided XRP is able to overcome the $1.13 mark, which also coincided with the Visible Range’s POC. However, expect this climb to come at a gentle pace as opposed to an extended rally as the region between $1.10-$1.17 showed a large amount of sell pressure in the past.
Reasoning
XRP indicators made key recoveries and presented some buy opportunities. The RSI traded rose above the 50-mark there was more room to grow before a reversal from overbought conditions. The Awesome Oscillator registered its first green bar above the half-line in nearly a month on the back of a bullish twin peak. Finally, the Directional Movement Index also noted a key crossover as the +DI line overtook the -DI line.
Conclusion
The next few days could see XRP trade below $1.05 as bulls gather momentum for an upwards breakout. This would open up a route to $1.30 as long as bulls are able to overcome selling pressure between $1.10-$1.17.
