Ripple bulls at inflection point
- 13th April 2021
- Posted by: Hakeem
- Category: Crypto
XRP price has been on a tear lately as it has more than tripled since late March. However, considering the overall cryptocurrency market being overextended, the remittance token might be due for a correction.
XRP price remains indecisive
XRP price spiked 100% from April 4 to April 6, creating a flag pole. The consolidation in the form of a pennant that ensued after the initial leg up created a bull flag pattern.
The technical formation forecasts a 50% upswing, determined by measuring the flag pole’s height and adding it to the breakout point. This consolidation saw a breakout on April 10 at $1.05, which signaled the start of a new uptrend to $1.58.
Since breaking out of the pennant, XRP price has surged nearly 42% to $1.50 but failed to hit its target at $1.58. If the remittances token manages to muster up bullish momentum, it might head toward the immediate supply barrier at $1.68, created by the Momentum Reversal Indicator’s (MRI) breakout line.
XRP/USDT 4-hour, 12-hour chart
The bullish momentum that more than tripled XRP price seems to have disappeared, resulting in consolidation. Additionally, the MRI has printed a cycle top in the form of a red ‘one’ candlestick on the 12-hour chart, forecasting a one-to-four candlestick correction.
Hence, a potential spike in selling pressure might push XRP price toward the 78.6% Fibonacci retracement level at $1.16. This move would indicate a 19% downswing.
If the said barrier fails to absorb the bearish momentum, the Ripple price could be in for a 13% correction toward the MRI’s State Trend Support at $1.