Ripple Price Forecast: XRP/USD Pivotal At $0.30; Triangle Breakout In The Offing

August 6th, 2020

Ripple-AzimoRipple hit a monthly high at $0.3278 during the weekend session. The magnificent rally was then followed by a reversal that tested $0.24. Since then, effort and attention have been channeled towards not only bringing down the resistance at $0.30 but also sustain gains towards $0.40 and $0.55 respectively.

At the time of writing, XRP is trading at $0.3005. The immediate upside is limited by the 100 Simple Moving Average (SMA) at $0.3009. The shorter-term 50 SMA ($0.3031) is also in line to hinder growth above $0.30.

On the downside, immediate support is expected but not guaranteed at $0.30. Note that, the price is likely to remain pivotal at this same level in the current and even the upcoming European session.

Technically, sideways trading is likely to take place based on the horizontally trending Moving Average Convergence Divergence. As long as the indicator remains stable at the midline, XRP/USD would favor consolidation. Moreover, the MACD can be used as a signal for the direction the price would take after the consolidation.

XRP/USD 1-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview

On the other hand, the Relative Strength Index (RSI) shows that buyers are likely to lose traction in the coming sessions. The RSI is trending downwards under the midline (50). Continued downward action is likely to encourage more sellers to join the market, forcing XRP through expected support areas at $0.30, $0.28 and $0.24.

On the bright side, the formation of a symmetrical triangle pattern suggests a breakout is around the corner. And if followed through, it could result in massive gains above $0.3278 and shift the target to $0.35 and $0.40 respectively.

Ripple Intraday Levels

Spot rate: $0.3005

Relative change: -0.0027

Percentage change: -0.92

Trend: Bearish biased

Volatility: Low