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  • Ripple is in consolidation, but a symmetrical triangle breakout could lift it to $1.
  • XRP/USD is holding firmly above the 50 SMA on the 4-hour chart.

Ripple has been stable over the last two days, mainly holding onto support at $0.6. Its upside has been capped by the seller congestion between $0.7 and $0.75. Short term analysis shows that the prevailing consolidation is preparing XRP for an ultimate turnaround to $1.

Ripple is drawing closer to a breakout

The cross-border cryptocurrency is trading at $0.61 at the time of writing amid a sideways trading action, as highlighted by the Relative Strength Index. Stability in XRP markets is providing ample time for the bulls to plan the next attack on key barriers.

The formation of a symmetrical triangle on the daily chart hints at a possible 49% upswing towards $1. However, for the massive breakout to come into the picture, XRP must close the day above $0.61 and perhaps slice through the descending trendline.

XRP/USD daily chart

On the 4-hour chart, the 50 Simple Moving Average is holding firmly. Ripple must close above this support zone to avert declines that could sabotage the uptrend. Besides, as long as the market’s stability continues, XRP bulls will focus on breaking above the crucial resistance range between $0.7 and $0.75.

XRP/USD daily chart

XRP/USD 4-hour chart

It is worth noting that the symmetrical triangle on the daily chart could result in a 49% downswing if the ascending trendline support fails to hold. On the other hand, closing the day under the 50 SMA on the 4-hour might trigger declines to the 100 SMA.

If the supply for XRP surges, the massive breakdown will be validated, forcing the cross-border digital assets to embark on a gains-trimming exercise. Last week’s support at $0.45 and the 200 SMA will absorb some of the selling pressure.

(Excerpt) Read more Here | 2020-12-03 22:59:00

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