XRP/USD has cooled marginally on Tuesday, following the big chunky bull run on Monday. The price initially saw double-digit gains of over 20%, printing a high yesterday at $0.4660. Given the very fast explosive move, it isn’t too surprising to see a pullback, potential profit-taking or a minor correction. Technically, this price behavior makes it more attractive for another herd of bulls to pile in and drive XRP/USD further higher.
Breakout Retest of Pennant
An additional confluence to the above detailed is the price has seen a breakout and retest of a pennant pattern. XRP/USD had been initially moving within this formation since the 18th December, right up to the breach on the 24th. This playing out to the textbook, seeing that sharp burst higher to then come back and retest the lower supporting trend line. The support that came into play was seen down at $0.3734, Tuesday’s session low.
Forget $0.40, Bulls are Targeting the Big $0.50
It had taken the bulls quite some time to break down the $0.40 price level again, which did prove to be a very tough barrier. Now that the bulls have pierced this area most recently in their run higher, it shouldn’t be made too difficult passing back through. At the time of writing, XRP/USD is attempting to stage a rebound, already testing the $0.40 area in early trading. Furthermore, should the bulls manage to pass through again, eyes will be locked in on $0.50.
The price has not traded up at the heights of the $0.50 territory since the 20th November, during the midst of the market selling pressure. Given the most recent technical price development, as broken down with the pennant, this being the next target makes sense. There may be some minor resistance around the Tuesday high print, $0.4660, other than this, it could be a clear run up to $0.50.
Daily Chart View
Observing the daily chart, it can be clearly seen how important that lower trend line is, currently supporting the price. Should the bears manage to force a break, then there could be some serious damage caused. In terms of support to the downside, other than this described, there isn’t much seen until back within the $0.20 territory. The below demand zone has played a vital role in the revival of the bulls.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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