Ripple’s XRP (CRYPTO: XRP) is trading lower Thursday in a cryptocurrency market that is cooling off. Many cryptocurrencies are trading lower after Bitcoin (CRYPTO: BTC) saw all-time highs Wednesday. XRP is trading in a technical pattern and could see a breakout in time.
Ripple was down 3.64% at $1.10 at last check Thursday. afternoon.
XRP Daily Chart Analysis
- XRP is holding above support in what technical traders call a pennant pattern. The pattern is now weeks or less from seeing a breakout.
- The crypto has seen narrowing highs and lows that form into the pennant. A break above the pattern support or resistance could cause the stock to see a breakout from the pennant.
- The crypto trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the crypto is likely facing a period of bullish sentiment.
- Each of these moving averages may hold as a potential area of support in the future.
- The Relative Strength Index (RSI) has been trading sideways above the middle line and sits at 51. This is showing that there is a relatively equal amount of buying and selling pressure in the market.
What’s Next For XRP?
Bulls are looking to see Ripple continue to consolidate for a time and eventually go on to break above the pattern resistance. Bulls are then hoping to see a consolidation period and a further bullish push in time.
Bears are looking to see the crypto fade lower and fall below the pattern support. This could signal that a bearish trend is coming in the future. Bears are also looking to see the crypto fall below the moving averages for a possible change in sentiment.
Image by Miloslav Hamřík from Pixabay
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