XRP Regains Key Horizontal Zone, Will Price Skyrocket?

On Feb 28, XRP bounced off the $0.75 horizontal area and successfully confirmed it as support.

Descending parallel channel

XRP has been falling in a descending parallel channel since September 6th. Such channels are considered corrective patterns, meaning a breakout above them would be the most likely scenario.

So far, the downtrend has led to a low of $0.55 on Jan. 22. The move confirmed the channel’s support line.

After that, the price started to rise and reached the horizontal zone of $0.70 again. The price rallied to confirm support on February 28 before bouncing back higher.

If there is a break above the channel, the next resistance will come in at $1.35.

XRP/USDT daily chart | Source: TradingView

Will XRP break out?

Technical indicators for the intraday period are giving mixed signals, although sloping to the upside.

This is because both the RSI and MACD are bullish. However, the RSI is just above 50 and the MACD is still at the zero line. Moves above it are a must for XRP’s trend to be considered bullish.

XRP/USDT daily chart | Source: TradingView

However, the six-hour chart is significantly more bullish.

It shows that XRP broke above the descending resistance line after the fourth test (red symbols). Currently, it looks like the price is about to validate this line as support.

Signals from the indicators support the possibility that XRP will rally towards the channel’s resistance line and a breakout is likely.

XRP/USDT 6 hour chart | Source: TradingView

count waves

Trader @CryptoTony_ tweeted an XRP chart and said that the correction is complete and the price will soon make new highs.

Source: Twitter

The February 9 drop appears to be an ABC corrective structure. However, it is not clear what the previous move higher (highlighted) was.

If the sustained rally is as long as the initial gain (which is common), XRP will definitely make a $1 high. This move will bring the price to the resistance line of the channel in the long term.

XRP/USDT 4 hour chart | Source: TradingView

You can see the BTC price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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