By
Chimamanda U. Martha
April 18th, 2024
If Bears push the coin to the lower trend line and the XRP price bounces, there would be a bullish rally and breakout at the upper trend line and the supply level of $0.32. If bears prevail over the bulls at the lower trend line, $0.30 support level is possible.
Key Highlights:
- The Pennant pattern confirmed in the XRP market;
- in case $0.30 price level does not hold, there will be a bearish break out;
- the break out is imminent.
XRP/USD Price Medium-term Trend: Ranging
Supply levels: $0.32, $0.34, $0.36
Demand levels: $0.30, $0.28, $0.25
The sideways movement of XRP/USD continues on the 4-Hour chart. The ranging movement of XRP price continues within the range of $0.32 supply levels and $0.30 demand level. A fake breakout scenario was noticed at the upper trend line of the pennant formed on the chart.
The bulls pushed up the coin to break up the supply level of $0.32 yesterday 7th of March but could not sustain the momentum. The bears rejected the rising in price of the XRP with the formation of a bearish engulfing candle which returned the coin into the pennant.
The two EMAs are interlocked to each other, remains flat horizontally without direction and the XRP price trading on the 21 periods EMA and 50 periods EMA. Currently, the XRP price is towards the lower trend line of the pennant with weak momentum.
Should the Bears pushed the coin to the lower trend line and the XRP price bounces, there would be a bullish rally and breakout at the upper trend line and the supply level of $0.32. In case the bears prevail over the bulls at the lower trend line, then, the breakout through the lower trend line and $0.30 support level is possible.
Meanwhile, the MACD period 12 is sliding below the zero levels and the signal lines pointing down which indicates sell signal.
XRP/USD Price Short-term Trend: Ranging
On the short-term outlook, XRP/USD continues ranging movement. The XRP price remains within the pennant formed, though fake breakout caused by the bulls was noticed. The Bears opposed the breakout and the XRP is currently rolling down towards the lower trend line. The breakout is actually imminent which could be at the upper trend line or lower trend line of the pennant, this depends on the Bulls and the Bears momentum.
There is a possibility for a bearish breakout in case the bears increase their momentum which will expose the coin to $0.28 demand level. The MACD with its histogram and the signal lines are below the zero levels indicate sell signal.