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Analysis

XRP’s fall with breach of descending triangle may welcome buyers

Namrata Shukla

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XRP found temporary relief from its falling price on 25 October, when it surged by 25.23%. Immediately, however, it corrected itself as it fell by 29.69%. The fall dragged the price of the coin, which had managed to break above $0.30 after months, to under $0.30. Since then, XRP has been noting sideways movement and was valued at $0.2940 with a market cap of $12.68 billion, at press time.

The short-term chart did not convey any positive news for the third-largest coin, as it prepared for the breach of a bearish pattern.

4-hour 

Source: XRP/USD on TradingView

Source: XRP/USD on TradingView

The 4-hour chart for XRP fashioned a descending triangle that extended across the lower highs and supports formed at the base of the triangle. The lower highs of the triangle were connected by the slope at $0.3151, $0.3105, $0.3060, and $0.2983, while the strong support rested at $0.2884. According to the nature of the pattern, a breakout toward the bearish end might be imminent, causing the price to drop further.

The 50 moving average rested above the 100 moving average and indicated a bullish market, as the volume also consolidated with the falling price.

Source: XRP/USD on TradingView

Source: XRP/USD on TradingView

The MACD indicator reported a recent crossover between the MACD line and the signal line, as bullish sentiment took the lead. However, the momentum wasn’t strong enough to sustain itself and might note a change. The Relative Strength Index suggested that the buying and selling pressures had evened, but the signal line might begin its journey towards the oversold zone.

Conclusion

XRP’s price might get hit by the bears with the breach of the descending triangle. The coin might return to its $0.25 and $0.23 zone.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she 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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on

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.