Bearish Descending Triangle Forming for Ripple’s XRP
A descending triangle is a bearish continuation. this pattern has been forming in XRP since the end of December.
Price action looked likely to break to the downside of the pattern yesterday but was saved after bullish surges took place across the market.
These bullish surges were led by Litecoin which appreciated over 10% before other major cryptocurrencies started following suit.
The bullish surges have brought XRP price action from the bottom of the descending triangle pattern to the top.
Price action for XRP has managed to trade above the descending triangle but has since moved back within. Although short-term momentum is to the upside – as shown by both the hourly MACD and RSI increasing – there is a strong possibility XRP may move downward from here.
XRP will have resistance in the form of the top of the descending triangle pattern.
Furthermore, many cryptocurrencies are forming lower highs including market leader Bitcoin which failed to break above its past high at $4240 as shown on the above 4-hour chart for Bitcoin.
For the moment, it is likely XRP will remain inside the descending triangle pattern.
Which direction it eventually breaks out in will likely depend on the movements of the overall market.
- XRP has been trading in a descending triangle pattern since the end of December. Descending triangles are bearish continuation patterns and increase the likelihood of bearish movements.
- XRP looked likely to break below the descending triangle pattern yesterday but bullish surges across the market yesterday brought XRP back to the top of the pattern.
- With resistance been met at the top of descending triangle and lower highs forming in major cryptocurrencies such as Bitcoin, it is likely XRP will move down from this point. What direction it breaks out of the descending triangle likely depends on the movement of the overall market.
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