XRP: Weekly Bullish Breakout Analysis 1W (Apr. 24)

24 apr 2020

X FORCE GLOBAL ANALYSIS:


XRP's Tether (USDT) pairing has been trading within a descending wedge over the past few weeks. In this analysis, we take a look at the bullish and bearish technicals suggested by XRP's chart.

Bullish Evidence

- A descending wedge pattern is typically known as a bullish reversal pattern
- We can count Elliott Triangle Waves (ABCDE), where we have currently seen the last wave take place
- We are currently testing the 0.236 Fibonacci resistance
- The Moving Average Convergence Divergence (MACD) is showing a potential golden cross

Bearish Evidence

- There is strong resistance around the 0.236 Fibonacci resistance
- The Relative Strength Index is trading inside a descending parallel channel, creating lower highs and lower lows
- The MACD's moving averages are forming lower highs and lower lows as well

What We Believe

Given that the overall market behaves, we can see a potentially bullish breakout for XRP on the weekly. However, a rejection at the 0.236 Fibonacci resistance or the descending trend lien resistance would negate a scenario for the breakout.

Trade Safe.