XRP poised for gains as parallel channel takes shape
XRP went on a downtrend along with other top coins last weekend. The coin showed signs of recovery following the dip and surged by 1.48% against the US Dollar over the past 24-hours and was trading at $0.232, at press time. According to data from CoinMarketCap, the coin registered a market cap of $10.06 billion and a 24-hour trading volume of $1.48 billion, a significant 18% of which was contributed by OKEx Korea via the trading pair XRP/BTC.
XRP 12-Hour Chart:
XRP’s 12-hour chart depicted the formation of a descending channel pattern with its price channeling down two downward sloping trendlines. This was indicative of a potential bullish breakout in the near term. Volume Profile [VPVR] indicator exhibited maximum trade volume in the range of $0.20-$0.30. If the trend persists and an upside breakout occurs, the coin’s price could move towards the high volume node and inch close to the psychological $0.30 barrier.
While a bearish reversal was unlikely, XRP was currently trading close to its support at $0.22.
MACD line hovered below the signal line in the above XRP chart. This predicted bearish phase for the coin. Additionally, RSI was well below the 5o median line which depicted a negative market sentiment among the XRP investors due to high selling pressure.
Despite the pattern suggesting a bullish phase for the coin in the near-term, the indicators projected a bearish picture for the coin. This could imply another potential decline in its price down the channel before the price of XRP finally breaks out to the positive side.