XRP’s stagnation phase could be done as the technicals turn bullish for the first time since July as reported in the Ripple price news.
XRP’s stagnation phase is contained in the $0.23 support and the $0.26 resistance level as the month-long consolidation period forced the Bollinger Bands to squeeze which only suggests that this altcoin is preparing to break out even more. If the cross-border remittances token manages to turn the overhead resistance into a support level, it will advance towards $0.3. While Bitcoin took the lead in the latest bullish run-up, XRP remained dormant but now technical indexes suggest that this altcoin is on the way for greener markets.
XRP went through a month-long consolidation period which forced the Bollinger Bands to squeeze on the 3-day chart as many analysts see these squeezes as phases of stagnation that are often succeeded by high levels of volatility. The longer the contraction, the more violent the move in the breakout will be. The index’s inability to provide a clear direction of the cross-border remittances token between the upper and lower band which are a reasonable no-trade zone thus breaking over the overhead resistance of $0.26 with the underlying support of $0.23 that will determine where this altcoin will go next.
Despite the ambiguity that this cryptocurrency presents, the parabolic stop and reverse metric or SAR now favors the bulls. The trend-following indicator estimated that the downtrend that started in August, reached exhaustion. As they stop and reversal points moved below XRP’s price in November, the odds for a breakout increased a lot. Based on the historical data, the stop and reversal system is highly effective in determining the course of the trend in the next 3-day charts as the last two times, the parabolic SAR flipped from bearish to bullish with the token increasing by 61% and 30% respectively.
By measuring the Fib retracement indicator from the high in February at $0.25 to March’s low of $0.114, the previous level is a critical resistance to pay attention to and there the 38.2% fib level converges with the upper Bollinger Band by adding an extra layer of strength to the hurdle. A bullish impulse that will allow XRP to turn the $0.26 barrier into support could lead the token upwards at 23.6% fib level at $0.29. on the flip side, the downswing that sends ripple below the $0.23 support could jeopardize the bullish outlook.
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