The price of XRP has reached intraday highs of $0.263, although bulls are struggling to maintain momentum
Ripple (XRP), which for a long time underperformed Bitcoin (BTC) and other large altcoins, traded higher to trade above $0.263. The bullish action was crucial as it meant the bulls broke above a rising triangle pattern, which limited prices since the XRP/USD currency pair plummeted mid-August highs around $0.33.
But momentum above the resistance line was not maintained as the price traded below the triangle pattern. The cryptomeda, however, maintains a bullish outlook as seen on the daily chart, so the XRP/USD pair needs to close higher to confirm the outlook.
Even so, as traders keep an eye on the upcoming XRP trends, the Bitcoin movement will also determine the bullishness.
An analyst shared a chart showing that the BTC/USD pair needs to hold $12,750-12,800 to maintain the bullish momentum to $13,500.
This is crucial as a failure could mean a price swing to as low as $12,200 or less for $11,900.
The XRP breakout to intraday highs above $0.263 was critical as it gave the bulls the impetus to keep prices above 100 – SMA. Keeping the bears at bay around this resistance, which has become a support area near $0.254, is even more important.
It is also important to point out that the formation of a hidden bullish movement in the moving average convergence indicator should offer more encouragement to buyers. Like MACD, the RSI also supports a bullish move as it rises.
So if bulls hold prices above the 100-day moving average, a run-up to August highs of around $0.30 remains a great possibility. On the negative side, a fall below 100-SMA opens a downward jump to the lower limit of the ascending triangle pattern, mentioned above.
On the 4-hour chart, the XRP/USD pair has posted a series of lower minimums and highs for the past five hours. The RSI suggests that the bulls still have the upper hand, however, going lower would leave the advantage to sellers.
A similar pattern appears on the 1-hour chart, suggesting further weakening of the bulls if downward pressure continues. The 50-SMA on the daily chart, and the 100-SMA and 200-SMA on the 4-hour chart, provide refuge at $0.245, $0.251 and $0.246 respectively.