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XRP Price Analysis: June 7

XRP/USD Breaks out From an Ascending Triangle!

On June 3, 2019, the XRP price reached a high of $0.465. A gradual decrease ensued and the price reached a low of $0.383 on Jun 4. The price has been increasing since.

Where will it go next? Keep reading below and find out.

XRP Price: Trends and Highlights for June 7

  • The XRP price reached a high on June 3.
  • It broke out from an ascending triangle.
  • The breakout occurred with significant volume.
  • It is facing resistance from the moving averages.
  • There is resistance near $0.45 and support near $0.40.

Previous Movement

The XRP price is analyzed at one-hour intervals from June 4 to June 7 in order to trace the current pattern.
On Jun 4, XRP/USD reached a low of $0.383. A rapid increase began and the price reached a high of $0.40 the same day. Since then, it has been trading inside the ascending triangle outlined below:
On June 6, the XRP price broke out from the triangle.
As is visible in the graph below, the breakout occurred with significant volume:
This is a sign that the breakout was legitimate and the buyers have significant strength.
Where will the XRP price go next? A look at technical indicators in a longer-timeframe is required in order to answer that question.

XRP Price: Technical Indicators

The XRP price is analyzed alongside the 200-period moving average (MA) below:
On May 28, XRP/USD reached a low of $0.462. A gradual increase began and the price reached a high of $0.474 on May 30. Since then, it has been trading inside the descending channel outlined below:

At the time of writing, the XRP price was struggling to break out above the 200-period MA.

Previously, the MA provided support on May 31, June 1 and June 3. This is the second attempt at breaking out above the MA. A breakout would also indicate that the price would break out above the descending channel.

As stated in our June 5 analysis, due to the long-term bearish divergence that has occurred, we believe this to be unlikely.

Reversal Areas

One support area and one resistance area is traced for XRP below.

The closest support area is found near $0.40. If the XRP price gets rejected by the resistance and begins to decrease, it is likely to reach this area. The analysis of technical indicators supports this claim.

The closest resistance area is found near $0.45. If the XRP price breaks out from the channel, it is likely to provide resistance. We do not believe this to be likely.

Summary

To conclude, the XRP price made a high on May 30 and is currently trading inside a descending channel. Furthermore, it recently broke out from a short-term ascending triangle. It is facing resistance from the moving averages and the technical indicators support a decrease.

Do you think the XRP price will break out from the channel? Let us know in the comments below.

What do you think?

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Written by Ravi

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