Ripple is consolidating but $ 3.30 in the crosshairs

  • The XRP price has shown intense indecision for the past five weeks with two weekly Doji candlesticks.
  • Tactically important 10-week simple moving average (SMA) that is still chasing price.
  • The Weekly Relative Strength Index (RSI) is showing a bearish momentum divergence from its April high.

The XRP price forms a symmetrical triangle pattern that is often viewed as a continuation pattern but can be resolved in either direction. The emerging pattern provides clarity on the uneven price action over the past month and solidifies the near-term neutral outlook for the international settlement sign.

XRP price turmoil is sending mixed signals for investors

For the past five weeks, XRP price has closed with two Doji candles, and Ripple could close with another one this week. The indecision illustrated by the pattern and exacerbated by the fact that it appears on a weekly chart presents a challenge to the bullish narrative and an upward resolution for the resulting symmetrical triangle pattern.

The bullish XRP price outlook can be refreshed with a rally above the upper trendline of the triangle at $ 1.67 and a daily close above last week’s doji high of $ 1.76. The break from indecision will put buyers back in control of Ripple and project higher returns on the altcoin.

Immediate resistance after the breakout will be the April high at $ 1.96, closely followed by the psychologically important $ 2.00 and the 61.8% Fibonacci retracement of the 2018-2020 decline at $ 2.08. Together, the three levels present a formidable challenge to the bullish XRP price narrative.

A successful rally above the $ 2.00 area puts XRP price in a great position to test the 78.6% retracement of the 2018-2020 decline at $ 2.61, an 80% gain over the Price corresponds to at the time of writing.

The potential for a positive resolution to the SEC case with Ripple, coupled with post-case IPO rumors, has led many investors to focus on the all-time high of $ 3.30. This year, other cryptocurrencies have proven that all-time highs can be a powerful magnet for price.

XRP / USD weekly chart

The bearish alternative for Ripple begins with a break below the lower trendline of the triangle at $ 1.14. However, the downtrend could be limited by the tactically important 10-week simple moving average (SMA) of $ 1.04 and the critically important $ 1.00.

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