Connect with us
Active Currencies 14907
Market Cap $2,486,321,210,899.20
Bitcoin Share 51.16%
24h Market Cap Change $-0.86

XRP’s price can rally by 40% ONLY if this pattern pans out!

3min Read

A bullish falling wedge pattern may finally come to the rescue of XRP.

XRP bulls to take over?

Share this article

  • XRP’s daily and weekly charts flashed red, at press time
  • While a few metrics seemed bullish, the rest suggested otherwise

Like several other cryptos, XRP has also recorded multiple corrections over the past week. However, investors might soon see a trend reversal, especially as a bullish pattern appeared on XRP’s chart. Thanks to the same, the token seemed to be on the verge of breaking out.

Hence, it’s worth looking at XRP’s current state to better understand what to expect in the short term. 

A bullish pattern on XRP’s chart

According to CoinMarketCap, XRP’s price dropped by nearly 2% in the last 7 days. This declining trend continued over the last 24 hours too, with the altcoin valued at $0.4755 with a market capitalization of over $26.4 billion at press time.

However, better news may be ahead. ZAYK Charts, a popular crypto analyst, recently shared a tweet highlighting a bullish falling wedge pattern. XRP had started to consolidate inside the pattern in March, and at the time of writing, it seemed to be on the verge of breaking out of it.

According to the analyst, a successful breakout might result in a 30% to 40% rally in the coming days or weeks. 

Is a breakout possible?

Since XRP might be about to break out of the bullish pattern, AMBCrypto analyzed its on-chain data to see whether it supported this possibility. Our analysis of Santiment’s data revealed that investors’ confidence in XRP has been high.

Both the token’s mean coin age of 1 year and 90 days registered massive upticks over the past month. These metrics, together, pointed to a hike in the number of coins that were not moved on the blockchain within the last year and 90 days. 

XRP's mean coin age

Source: Santiment

AMBCrypto’s analysis of Hyblock Capital’s data also revealed an interesting relationship between XRP’s price and its cumulative liquidation delta.

We found that whenever the token’s cumulative liquidation delta turns green, the token’s price action either slows down or declines. To the contrary, when this metric turns red, it is usually followed by a price hike.

At press time, this metric had a value of -785, hinting at a price uptick on the charts soon. 

Source: Hyblock Capital

That being said, a few of the metrics looked bearish. For instance, Coinglass’s data suggested that the token’s long/short ratio dropped – A sign of bearish sentiment rising across the board.

Additionally, its Fear and Greed Index was also in a “greed” phase at press time. Whenever the metric hits that level, it indicates that the chances of a price correction are high. 


Is your portfolio green? Check out the XRP Profit Calculator  


Nonetheless, the Relative Strength Index (RSI) registered an uptick. The MACD also flashed the possibility of a bullish crossover – More evidence supporting the likelihood of XRP successfully breaking out from the falling wedge pattern. 

Source: TradingView

Share

Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.