Bulls keep close eye on XRP for breakout as it enters lengthy consolidation phase

XRP is facing a prolonged consolidation phase, a trading pattern that offers possible hints regarding the token’s subsequent price trajectory. 

Indeed, the value of XRP has stagnated in the same region for several months, showing no signs of a possible breakout. This development contrasts the general market, as most altcoins have taken advantage of the 2023 rally to record price breakouts.

In particular, between late October 2022 and January 25, the value of XRP has mainly traded in the range of $0.40 and $0.46. However, the token has momentarily breached key support and resistance levels during the period while sustaining a high trading volume.

XRP candle chart. Source. TradingView

Why XRP is consolidating

Although the price movement can be viewed as a positive sign as it suggests that the coin’s price is not experiencing the volatility associated with the market, it can also be interpreted differently. 

The scenario can indicate that XRP is pausing before making a significant move in either direction. In such a phase, the XRP community may be monitoring the market conditions and waiting for a clear signal to buy or sell. Historically, such consolidation has ended up in a price breakout. Therefore, bulls could be monitoring the situation before deciding to move. 

Furthermore, the price stagnation could have been triggered by market participants who believe XRP will likely go down, resulting in attempted dumping of the token in large amounts. 

However, XRP appears to have responded to this campaign triggering a strong demand for the coin and buyers willing to absorb the large sell orders. This could signal that XRP is staring at a possible price breakout in the coming days.

It’s important to note that consolidation can indicate indecision among XRP investors due to the inability to predict the possible price movement. This has coincided with a phase when XRP is expected to be affected by the ongoing legal case between Ripple and the Securities and Exchange Commission (SEC). In the matter, the blockchain firm is accused of selling unregistered securities in the form of XRP.

XRP price analysis

By press time, XRP was trading at $0.41 with daily losses of about 3.5%. On the weekly chart, XRP is up 2%. 

XRP seven-day price chart. Source: Finbold

The token is controlling a market cap of $20.6 billion.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

No comments to show.
New Bookmakers
Playfina.com

The newest member of DAMA N.V. family offers more than 6000 games and accepts a wide range of cryptocurrencies, which are arguably the most widely used form of payment for gamblers right now.

Cryptoplay.io

In the year 2021, Cryptoplay Casino went live for the first time. To bitcoin enthusiasts, the online gaming site offers an amazing game library, exclusive bonuses, and promotions.

CryptoGames

Since its inception in 2014, this crypto casino has amassed a sizable following and an even stronger reputation. This all-crypto casino has 8 Provably Fair games, a faucet, and the ability to utilize one of ten cryptocurrencies.

PlayAmo

In general, if you're looking for information on the PlayAmo casino's features and idiosyncrasies, you'll find it here.

Oshi

Oshi Casino is a bitcoin casino with a simple instant-play interface that accepts euro deposits as well as other cryptocurrencies like Ethereum.