XRP price trades in a very tight range as the fresh trading week begins but on a positive note. As the price trade is near the inflection point, either side’s breakout will decide a further course of action.
- XRP price edges higher on Monday.
- More gains in XRP if the pennant pattern results in a bullish breakout.
- The momentum oscillators hint at the continuation of the upside momentum.
XRP price awaits a crucial breakout
On the daily chart, XRP price trades inside the ‘Pennant’ formation. After testing the lows in February at $0.62, the price continues to trade higher but with limited gains. Currently, the XRP price trades near the ‘inflection point’. A breakout above or below will dictate the further price action in the asset.
Looking at the possibility of the breakout, It is important to analyze the volume’s trend. While the price is moving higher, volumes were also rising. This indicates the trend is in favor of a bullish breakout. Now, if that happens, in that case, XRP must face the 200-day SMA (Simple Moving Average) at $0.84 as the first step toward further upside movement.
Above 200-SMA XRP price will meet the next target at the highs of February 9 at $0.91.
However, in order to take out the psychological $1.0 mark bulls must make strong buying pressure.
On the other hand, if the price falls to the session’s low then it will be a case of a lower breakout with the first target at $0.75 followed by the horizontal support at $0.70.
As of press time, XRP/USD is trading at $0.89, up 0.60% for the day.
Technical Indicators:
RSI: The daily Relative Strength Index holds firmly above the average line. The current reading is at 57.
MACD: The Moving Average Convergence Divergence (MACD) points at the continuation of the uptrend as trades above the central line with the underlying bullish sentiment.
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