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Will This Pattern Crash XRP Or Is A Bullish Revival Set For 2023? – Crypto News

Published

2 years ago

December 31, 2022

Dripp

Published 10 minutes ago

The XRP market has been exhibiting a head and shoulders pattern for the second half of 2022, which is often seen as a bearish signal indicating a potential decline price. This pattern occurs when buyers are unable to push the price higher after reaching a certain level of support, known as the neckline, leading to a downward trend. However, a bullish indication hints at a bounce back in 2023.

Key Points:

A head and shoulders pattern governs the XRP price action.
A bullish breakout from $0.4 will undermine this bearish pattern.
The intraday trading volume in the XRP price is $372.1 million, indicating a 50% loss.

XRP Source- tradingview

Despite the recent bullish recovery reaching the heights of the 50-day EMA, the XRP market price takes a bearish turn to create a bearish pattern coming in the long term. In the month of December, the market value of the refill token has plunged by 16.5% and trades slightly below the mark of $0.35.

Coming back to the long term pattern, the price trend shows a head and shoulders pattern forming on the daily chart with the neckline at $0.31-0.3. The neckline gains credibility by acting as a strong support level during the consolidation phase between June and October.

Also read – XRP Lawsuit: Are XRP Holders Biggest Loser In Ripple Case? Attorney Suggests This

Continuing the falling trend under the bearish aligned EMAs, the market value may soon succumb below the neckline highlighting a bearish entry point.

In such a case, XRP investors can witness further decline in market price, potentially a drop of 37% to the next support level at $0.18.

On a contrary note, if the new year brings new investors for ripple, a reversal above the neckline crossing the $0.40 mark will break the bearish hypothesis.

Additionally, to support the bullish reversal a double bottom pattern is evident within the right shoulder of the bearish pattern.

Considering, the bulls gain momentum in 2023, a double bottom breakout could revive the XRP buying spree.

technical indicators

EMA: undermining the recovery in November and December, the crucial daily EMAs- 20, 50, 100, 200 maintain a negative trend displaying a long term bearish phase in action.

Relative strength indicator: the rsi The slope shows a short-term decline from the midline but the bullish divergence in the double bottom pattern keeps the hope burning for XRP buyers.

XRP intraday price levels

Spot price: $0.344
Trend: Bearish
Volatility: High
Resistance level- $0.373 and $0.41
Support levels- $0.31 and $0.26

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian(at)coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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