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XRP could breach falling wedge pattern and rise to $0.83

Manu Naik

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XRP has been oscillating quite violently since mid-April, switching from around $0.90 to $0.24 over the course of the next three months. While a period of relative stability soon emerged, XRP is now seeing some substantial movement, possibly related to the recent pump in Bitcoin’s value.

With a valuation of $0.29 at press time, XRP has a market cap of almost $12.9 billion and a 24 hour trading volume of over $1.89 billion, having recorded a 0.15% increase in price over the day.

XRP Daily Chart

XRP

Source: XRPUSD on TradingView

A glance at the daily price chart for XRP shows that XRP entered into a rough falling wedge pattern in May. This is likely an atypical case, as the volume indicator was seen to be trending upward, which only occurs in around 25% of all cases.

As the price, at the time of this writing, moves over the 50 and 100-day moving averages, it’s safe to say that XRP’s value is likely to move upwards over the next few weeks, if it is able to breach the $0.37 resistance.

EMA Ribbons and MACD

XRP

Source: XRPUSD on TradingView

The MACD doesn’t quite paint a vivid picture however, as the signal line and the MACD line were seen to be moving on the same line. If the price falls, it will have to test the $0.28 support, with a possible breach down below $0.10.

However, this movement seems unlikely as almost 70% of all falling wedge breakouts occur upwards. Considering the trend of trade volumes and the positioning of the EMA Ribbons, while posing for a divergent action under the price line, the price is likely to move upwards in the next few weeks.

If XRP breaches the $0.30 resistance, the price will probably continue to move upwards, breaching the falling wedge pattern to surge to around $0.83.

Manu is a full-time journalist at AMBCrypto covering the US and Indian markets. A graduate in engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

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Altcoins

Litecoin’s ailing price prepares for breach of descending channel

Namrata Shukla

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Source: Pixabay

Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.

Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.

Short-term

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.

The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.

Conclusion

Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.