Ripple (XRP) – Fulfilling a descending triangle
Posted on Monday, February 21 2022 at 8:11 pm GMT+0000
Ripple (XRP) has been gradually declining within a descending triangle over the past couple of weeks and is currently challenging the lower line for the third time.
The MACD is endorsing the negative momentum in the price, as it is gliding beneath its trigger line in the negative region. Noteworthy is the squeeze in the Bollinger bands, which is signaling that a surge in volatility and a large directional move may soon evolve.
The price seems currently looking for the opportunity to break below the floor of the descending triangle at 0.76. Such a move will bolster selling forces, leading the price initially towards the 61.8% Fibonacci retracement of the previous month’s rally at 0.69. Should negative pressures intensify further, the 0.63 inside swing high of February 2nd will come into play before sellers turn their attention towards the target of the pattern at 0.59.
On the flip side, a move beyond the mid-Bollinger band would bring the upward line of the pattern and the adjacent upper-Bollinger band, at 0.80 and 0.82 respectively, under examination. A decisive step beyond those obstacles will immediately reach the February 15th high at 0.86. Further higher, buyers will gain further confidence to steer the price towards the February 15th peak at 0.92.
To summarize, the short-term bias is viewed as neutral at the time being, as the price is fulfilling a descending triangle and any breakout could determine the next direction in the market.
