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Analysis

How XRP can progress within its rising wedge

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An air of uncertainty seems to be surrounding XRP at the moment. The alt has maintained within a rising wedge for 6 weeks now as neither side found the strength for a breakout. With momentum slowing down on the MACD and Awesome Oscillator, XRP could continue to consolidate within the pattern before approaching a more critical price level. At the time of writing, XRP traded at $1.10, up by 2.1% over the last 24 hours.

XRP Daily Chart

Source: XRP/USD, TradingView

XRP seems to have averted a breakdown after rebounding from the 38.2% Fibonacci level and setting up a potential second green candlestick. However, this was the only positive development for XRP in the past couple of days. An ADX reading of just 10 highlighted the lack of strength and volatility in the market. Based on such readings, XRP could trade sideways between near-term resistance of $1.13 and the 38.2% Fibonacci level.

Should XRP find momentum for a move above the 20-SMA (red), another retest of $1.2o could be possible provided bulls clear 21 October’s swing high of $1.15. A decisive close above the 23.6% Fibonacci level can allow XRP to stretch its legs and target a possible 24% hike to $1.50.

Now despite XRP’s lackluster nature, the RSI has recovered steadily since mid-September. If the RSI respects its lower trendline and moves above 55-60, XRP would be in a good position to break north from its wedge. On the flip side, a move below 45 would keep XRP grounded within the pattern. Short-sellers can initiate additional drawdowns in case XRP weakens below the $1.07-mark.

Conclusion 

Weak spot volumes could see XRP maintain its consolidation within its rising wedge. Once the RSI advances into bullish territory, expect XRP to challenge the $1.20 price ceiling and target an upwards breakout. Should XRP clear this hurdle convincingly, a 24% surge to $1.50 could come to light.

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A business graduate with a keen interest in emerging markets across South East Asia. As a financial journalist, he covered stocks and market reports across Australia and New Zealand as well.