UBRI Connect Virtual – Day 2, Part 2
October 13th 2020
- Ripple holds above the 50 SMA as a breakout to $0.3 looms.
- XRP/USD bullish narrative is supported by growing volume, an upward trending RSI and a potential ascending triangle breakout.
Ripple’s recovery has, in the recent past, hit a wall at $0.26. In September, the cross-border token appeared to have bottomed out at $0.22. Recovery followed, but gains above $0.26 remained out of the picture.
At the time of writing, XRP/USD is dancing at $0.258 as buyers nurture an uptrend. An ascending triangle pattern seems to be grinding closer to a breakout. The pattern is typical in technical analysis. It is formed by price actions that allow a horizontal line to connect a series of swing highs and a rising trendline that connects a series of higher lows.
XRP/USD 4-hour chart
For now, a breakout is expected above the triangle resistance. The Relative Strength Index (RSI) confirms the possibility of the price shooting above the horizontal trendline. Significant gains are anticipated towards $0.3 as long as the hurdle at $0.26 is in the rearview.
On the downside, retreat from the current price level will embrace initial support at the 50 Simple Moving Average (SMA) in the 4-hour timeframe. If push comes to shove and a drop of a more significant magnitude comes into the picture, other anchors to have in mind include $0.4, $0.23, and $0.22.
The fact that the 50 SMA is holding above the longer-term 100 SMA suggests that buyers are in charge. However, it essential that the breakout materializes as soon as possible because bears continue to sharpen their close, ready to put intense pressure on Ripple.
Ripple Intraday Levels
Spot rate: $0.258
Relative change: 0.0004
Percentage change: 0.08
Trend: Bullish bias
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