- Despite testing the resistance level on five occasions, XRP was unable to break out.
- XRP forms the inverted cup and handle pattern, traders should be high on alert.
Crypto Analyst and Researcher King Solomon expressed his curiosity about XRP breaking its 22 months of resistance.
As shown in the tweet, XRP wasn’t able to break the resistance despite breaking above the 21-day EMA and 50-day EMA. The token tested the resistance level on multiple occasions but the bulls weren’t able to help XRP break the barrier.
When considering the chart below closely, it could be noted that XRP wasn’t trading close to the resistance. It was trading way below the resistance level but once in a while when the bulls gave it momentum, the token took off, tested, then fell back to its regular area of fluctuation.
Moreover, when scrutinizing the range of fluctuation highlighted by the square, XRP was making lower highs. However, the bulls were able to stop the bears from tanking XRP to lower lows.
As shown in the chart below, XRP formed the inverted cup and handle pattern. Currently, the token is forming the handle in the backdrop of widening Bollinger bands, hence, there could be more volatility in the market during the next few months. Moreover, as XRP has touched the upper Bollinger band, there is a possibility that the market may correct the prices.
We could expect XRP to move sideways as the RSI line valued at 69.21 is positioned parallel to the horizontal axis despite touching the overbought region. The Bear Bull Power is at 0.0189, but the line is heading towards the zero line. This shows that the bulls may be losing power and the bears are taking over. Hence, XRP could tank to support 1, if the bulls don’t interject.
Traders could consider entering a short position after observing the reduction in volume. This reduction in volume could confirm the end of the formation of the handle, which means XRP may start to fall after forming the handle. It may also be a good idea to set a stop loss.
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