- XRP/USD has been within consolidation mode after failing to break $0.40 the past few days.
- Price action has formed a bullish pennant pattern, subject to a breakout to the upside.
XRP/USD is currently moving within a consolidation mode, following the chunky gains seen this week so far. The price has jumped as much as 40% in the latest bull run. It was pushed to the highest level seen since the back-end of November. XRP/USD had been subject to four straight weeks of trading in the red. However, that weekly run south, is coming to an end in the approach to Sunday.
Latest Bull Run
Buyers came back into play down within a known demand area. This was seen just below the $0.30 mark. XRP/USD then surged aggressively to the north, as detailed above. Moves from stated territory have been observed, in December 2017, August and September 2018. Over the past three sessions, bulls have penetrated vital near-term resistance, around the $0.40 mark. This is an area which looks to hold the key to greater buying pressure, should it be breached.
Given the above behavior, with rejections at the $0.40 level, as noted, XRP/USD has been forced back within consolidation. Nevertheless, with this price action has formed a bullish pennant pattern subject to an extended breakout to the upside, which will likely see the mentioned barrier breached, plus much more. If playing by the textbook, the length of the pennant pole, suggests of another at least 30% move.
Keeping the above in mind, such a technical development could see XRP/USD flying quickly back to the big psychological $0.50 level. The price last traded here on 20th November, which was very much during the midst of the renewed market fall. Looking further to the upside, there isn’t much in the way of barriers for the $0.55 mark to be reclaimed. XRP last traded here at the start of November.
Ultimately, observing the weekly chart view, with XRP/USD maintaining current upside momentum, it does have a decent opportunity of quickly reclaiming the huge $1.00 mark. The stages that need to be tackled would be; $0.50, $0.55, $0.60, $0.80-$0.85, then $1.00. The price last traded up here bac on the 5th March, which almost seems like history given the moves seen this year.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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