2021 has been a year of great competition for the top ten most valuable assets in the cryptocurrency market. This intense competition has resulted in XRP shaking its third place and Ripple (XRP) At the end of the year, it dropped to eighth place.
The litigation between the SEC and Ripple, which began in December 2020, has been a major problem that the international remittance token has been dealing with for much of 2021.
It is worth noting that as investors continue to diversify, it becomes extremely difficult to maintain the same position as smaller tokens continue to rise uphill.
Ripple price is trading ‘floppy’ at $0.8272 per unit, as if showing it is still going strong with a market cap of $39.37 billion.
Ripple Price Forms Rectangular Pattern in Horizontal Price Action
Since December 29, XRP has been trading sideways between the $0.8056 and $0.8586 price range. After falling below the psychological level of $1.0 on Dec. 23, price correction began and the bears regained control of the market, turning the 50, 100 and 200 Simple Moving Averages (SMA) from support to resistance.
This represents an 18% drop from the December 23 high of $1,061 to the current price of about $0.8272 in sideways price action forming a rectangular chart pattern.
It is important to remember that the narrowing of the Bollinger Bands indicates that the XRP price is consolidating. It, XRPThis means that any pressure on the foundation to push up will be canceled out by the overall pressure. If that happens, the asset could continue trading below $0.90 in the next few days.
Sideways price action is confirmed by the sideways movement of the MACD as well as the leveling of trading volume as shown on the four-hour chart. This shows that the bulls and bears are balancing each other.
XRP/USD Four-Hour Chart
The rectangle pattern is not a defined bullish or bearish break, but a break of the upper border of the rectangle around $0.8586 Ripple It can be seen that it predicts an upward movement.
Ripple seems to be struggling with immediate resistance near $0.8334. XRP price must close the session above this level and rise above the $0.8440 level for the bullish move to be confirmed. This coincides with the middle boundary of the Bollinger Band (BB).
If XRP breaks the $0.8586 resistance formed by the middle border of the rectangle, a decisive bullish break will occur, followed by a move to reclaim the $0.90 level.
On the other hand, if XRP closes the day below the immediate support at $0.8255, it could see the bulls pull back to retest the $0.8189 and $0.8056 support levels embraced by the lower border of BB and the lower border of the rectangle, respectively.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.