Wed, 27/12/2023 – 12:42
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The date Dec. 29 is massively important to XRP, mostly for technical reasons. The technical analysis of the XRP/USDT price chart suggests an imminent breakout from a descending triangle pattern, which could herald a significant volatility surge and directional shift for the asset.
The descending triangle observed on XRP’s daily chart is characterized by a flat lower boundary that acts as support and a downward-sloping upper boundary that represents descending resistance levels. This pattern often indicates accumulation in a period of uncertainty, with the price compressing toward the triangle’s apex. As XRP approaches this converging point, the likelihood of a decisive move increases.
For XRP, the key support level to watch is around $0.55, a point that has repeatedly held firm against bearish pressure. Should XRP maintain above this level, it bolsters the case for an upward breakout. Conversely, a fall below this pivotal support could see XRP’s price descend to test lower supports, possibly around the $0.50 zone, where previous buying activity may provide some buoyancy.
Resistance levels are equally critical in this scenario. The immediate resistance lies near the upper boundary of the triangle, at approximately $0.63. A convincing push above this resistance could trigger an accelerated move toward the $0.65 level, where previous price actions have created a congestion zone. Penetrating this area could open the door to a test of higher resistances, potentially around the $0.70 mark.
As Dec. 29 approaches, the tension increases, pulling volatility upward, too. Investors should prepare for heightened activity, especially after the holidays are over, as breakouts from such patterns can lead to swift and sizable price movements. It is essential to consider both scenarios: an upward thrust could validate a bullish outlook for XRP, while a downward break may necessitate a reassessment of the medium-term sentiment.