XRP Price Correction
In the current market, XRP has experienced a reversal from its recent peak, with a 20% decrease in value, bringing it down to around $0.6 with a market capitalization of $32.4 billion. However, you might find it interesting to note that a 4-hour time frame chart analysis suggests a bullish continuation pattern known as a ‘flag’ is forming.
Support at $0.6
As XRP faced a reversal in mid-October and early November, the correction is finding support at the combined support of $0.6 and the 50% Fibonacci retracement level. Such retracements often regenerate momentum, indicating a potential bullish trend.
Formation of Bullish Flag Pattern
XRP’s price is currently within two downward-sloping trendlines, indicating the formation of a bullish flag pattern. This pattern could lead to a potential recovery of up to 40%, targeting around $0.83. However, this could face resistance at a long-standing trendline.
The Chart Analysis
The Bollinger Band challenge on the downside reflects selling momentum, while the Moving Average Convergence Divergence shows a bearish crossover, indicating the ongoing correction trend.
Multi-Year Pattern Hints
A look at the monthly time frame chart shows the XRP price has been resonating within the two converging trendlines of a symmetrical triangle pattern since 2018. The coin price reverted from both the upper and lower trendlines, indicating the strong influence of this pattern between the pricing trends. As the current recovery is poised to reach the upper trendline, the XRP price may face a surge in supply pressure.
Hot Take
Overall, despite the recent correction, XRP has the potential to create a bullish momentum. As the support holds at $0.6, buyers have an opportunity to replenish before the potential leap above the upper trendline. However, keep in mind the potential resistance at the long-standing trendline around $0.83, which could hinder the recovery.
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