Ripple Price Stuck In a Range; Upside Looks Limited
Ripple price as represented on the daily chart of the XRPUSD pair appears to have entered into a consolidation phase, following the breakdown of the ascending channel. Due to the correlation of the XRPUSD pair with Bitcoin prices on the BTCUSD chart, the pair tends to follow the movements of BTCUSD. The channel breakdown followed the price decline on BTCUSD from the $10,000 mark to the $8810 price level.
This price picture appears defiant to the declaration from Ripple’s Chief Technology Officer David Schwartz, stating that Ripple’s On-Demand Liquidity product for the EUR/USD pair has seen a rise in transaction volume to the tune of $1.5m. Price action on the XRPUSD pair seems bent on sticking to its correlation with Bitcoin prices for short-term direction rather than the positive news being dished out by the team at Ripple Labs.
Ripple price action on the daily chart shows that price action now has a well-defined lower barrier at 0.17801. However, the price candles are showing progressively lower tops, which can be connected with a downward slanting trendline. The picture is that of a descending triangle.
The technical expectation is for the price to break below this triangle. If this were to occur, then the initial target to such a breakdown move would be at 0.16153, with a possible extension towards 0.13885 which would fulfil the conditions for a measured move from the breakdown point.
On the flip side, a recovery in Bitcoin prices could allow the XRPUSD pair break above the descending upper border of the triangle, which sends the pair towards the 0.20109 initial price target. Further price advance sees XRPUSD targeting the 0.21288 resistance (previous lows of 27 November, 4 December 2019 and 24 January 2020, as well as the previous high of 11 March 2020). 0.23105 and 0.23299 are possible price targets if the XRPUSD pair can break above 0.21288.