Disclaimer: The following article should not be taken as investment advice and the findings of the same should be foreseeable over the next 24-48 hours
XRP has struggled recently to keep its valuation above the $0.30 mark, with increasing sell pressure keeping the cryptocurrency’s value just under its resistance level on the charts. However, its continued consolidation above $0.272 has been a positive sign, an observation highlighted by the continuous sideways movement since the beginning of August. With a valuation of $0.281 at press time, XRP was noting a market cap of $12.6 billion with a 24-hour trading volume of $1.7 billion.
XRP 1-hour chart
Source: XRP/USD on TradingView
As illustrated on the 1-hour chart, XRP’s recent re-test of $0.32 came on the back of a descending channel breakout. The price registered movement within the trendlines for a period of 10 days, before catapulting itself towards its immediate resistance. After a sharp test at $0.324 however, another pullback was observed on the charts.
At the time of writing, XRP was giving way to a falling wedge pattern, one that bore bullish implications as well. Considering the fact that the trading volume of the crypto-asset has been declining alongside its value, a reversal would possibly propel the token towards another attempt at breaching $0.324.
Although the immediate resistance lay at $0.292, according to the Fibonacci retracement lines, the trend over the remaining week wasn’t exactly clear.
In light of the support level at $0.272 holding strong for over 3 weeks now, another bounceback is more likely than a decline down the charts.
XRP 30-min chart
Source: XRP/USD on Trading View
Assuming that XRP’s price will rise, a long position can be put in place for a fruition time frame of 24-48 hours. The entry point can be established at $0.279 with a take profit target at the immediate resistance of $0.292. To limit losses if the trend goes south, a stop loss would be placed at $0.276, completing a 3.8x Risk/Reward ratio for the current trade.
Additionally, the Awesome Oscillator gave further proof of an uptrend as higher highs with respect to bullish momentum were noted on the charts.
Conclusion
XRP will possibly re-test its immediate resistance at $0.292 over the next 24-48 hours.
