- XRP continues to trade above $0.26 support.
- Descending resistance trend line continues offering resistance.
- Ripple trading in an increasingly tighter range.
Cryptocurrency heat map by Coin360
The overall cryptocurrency market continues to be bearish as the market leaders – BTC, ETH, LTC, XRP, and ADA are all in the red and heading towards further downside.
Ripple Price Prediction: XRP set to break the descending triangle today?
XRP/USD opened at $0.2683 today after several days of sideways consolidation. Overall, Ripple has continued to trade in a descending triangle pattern for the past weeks. However, the consolidation range is looking to end soon as Ripple’s price has little room to trade both to the upside and to the downside.
Therefore, Ripple will likely make a breakout to either side today. Next support if a break to the downside occurs is seen around $0.21. Next resistance – around $0.31.
Ripple price movement in the last 24 hours
Ripple traded in a range of $0.2597 – $0.2700 over the last 24 hours. The small trading range indicates a general lack of volatility in the market as XRP prepares for a break out of the several week descending triangle pattern.
Ripple price chart by TradingView
XRP/USD 4-hour chart – Ripple looks to break to the downside
As mentioned in our previous Ripple price prediction, XRP has been struggling to hit further highs. Ripple has set several lower highs over the past weeks along the descending trend line and the $0.26 horizontal support that forms the triangle pattern.
Right now, Ripple is testing the $0.26 area of support once again. The support did reverse XRP/USD several times over the past weeks, with the most notable rejections seen on the 11th, 15th, and 21st of January. The last attempt to break below the support on the 21st of January was partly successful as Ripple moved as low as $0.24. However, Ripple did bounce back above the $0.26 support immediately, indicating that the support still holds.
The brief move below the $0.26 support likely indicates that the market is ready to move below it. Therefore, the analyst expects Ripple to move towards the next support around $0.21 – $0.22 in the upcoming days. The $0.21 – $0.22 support is significant as it provided support for XRP/USD on the way down twice in the past weeks. First case being on the 23rd of December, and second, on the 2nd of January.
Further target to the downside for Ripple is seen around $0.18. If Ripple can move towards it from the current price, a move of over 30 percent would be made, offering a good potential for a short position.
Alternatively, if Ripple continues to trade above the $0.26 support and breaks above the descending resistance trend line, the analyst predicts further upside. Ripple would likely make a move of around 20 percent towards the next horizontal resistance of $0.31. Additional resistance is seen around $0.37 and would mean a movement of over 40 percent from the current price.
Therefore, Ripple should see increased volatility over the remainder of this week. The question right now is whether it will be to the upside or the downside.
Ripple Price Prediction: conclusion
Overall, the Ripple price prediction right now is neutral. The several week consolidation in a descending triangle pattern needs to be broken.
If Ripple breaks to the upside, a target to watch is the $0.31 horizontal resistance. Alternatively, if Ripple breaks to the downside, the target to watch is the $0.21 – $0.22 support. Either way, Ripple should see increased volatility later this week, which is only normal after such a long period of consolidation.
Ripple looks to break to the downside right now; however, a false breakout has been seen before. Traders should wait for further price action that confirms the breakout before entering a position.
For further reading, see our latest news article on how an anonymous address sent $27 Million worth of XRP to Coinbase
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.