Cryptocurrency Ripple (XRP) is trading inside a falling wedge, from which it is expected to soon break out and go up. A breakout of the current downward resistance line is also quite likely, but not in the near future.
Downward resistance line
XRP has been following a downward resistance line since it peaked at 3760 Satoshi last October. Since then, quotes have bounced off this line three times, and the last time it happened this month.
At the same time, the price managed to settle above the level of 2450 Satoshi, which acted as a support throughout 2019. As long as the cryptocurrency is above this level, a breakout of the resistance line can be expected. In this scenario, the next resistance level will be the level However, the price 3200 Satoshi.
Technical indicators paint a bullish picture. The RSI is poised to bounce off the 50 level, and the long-term MACD has been on the rise for quite some time now and looks to be gearing up for a return to positive territory. This, in turn, suggests that even if the current support is lost, the chances of a breakdown of the downward resistance line will remain.
Cryptocurrency trader @Crypto_Iso notes that XRP will continue to rally and reach the downside resistance line at 2650 Satoshi.
However, the shorter-term charts show that the price is inside the falling wedge pattern, which is located directly near the current price. In case of an upside breakout, next resistance is expected at 2800 Satoshi.
The price bounced off the 50-day moving average and the RSI settled at the 50 level. Thus, this area looks appropriate for a rebound.
The RSI does not signal bullish divergence, while the MACD indicates potential for a bullish reversal.
XRP has completed three waves within a five-wave structure since March and is now in its fourth wave stage.
Reaching the maximum of the first wave of $0.236 will level this wave structure, and for now, the completion of the formation is expected at the level of 0.5% Fibonacci retracement in the region of $0.24.