XRP has been tumbling inside a weakening parallel channel afterward Sept. 6. Such channels are considered corrective patterns, meaning that a breakout from it would be the most likely scenario.
So far, the descending development has led to a flat of $0.55 on Jan. 22. This confirmd the support line of the channel.
Afterwards, the rate initiated an skyward change and reclaimed the $0.70 horizontal range. It returned to approve it as support on Feb. 28 before bouncing again.
If a breakout from the channel occurs, the next resistance field would be at $1.35.
Will XRP break out?
Technical indicators in the daily time-frame are mixed, though they are leaning on bullish.
The reason for this is that both the RSI and MACD are moving ascendings. After all, the RSI is scarcely over 50 and the MACD is also at the 0 line. Movements over these levels are required in order for the XRP trend to vitally be considered bullish.
The six hour chart, however, is more clearly bullish.
It shows that XRP has broken out from a falling resistance line after the fourth attempt (red icons). Currently, it seems to be in the process of validating the line as support.
This reading supports the possibility that XRP will increase towards the resistance line of the channel and potentially break out.
Wave count analysis
Cryptocurrency trader @CryptoTony_ tweeted a chart of XRP, stating that a correction is complete and new excessives will folbottom.
The decrease measuring from Feb. 9 does seem to be an A-B-C corrective structure. Notwithstanding, it isn’t clear what the preceding skyward progress (highlighted) is.
In any case, granted that the ongoing increase has the same length as the initial one, that is common, XRP would reach a high of $1. This would take it to the resistance line of the protracted-term channel.
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