XRP price is still in limbo with support at $0.46 and resistance at $0.5 despite entering the week’s trade. During Monday’s Asian session, XRP hovered around $0.468, with the price remaining relatively unchanged since the weekend.
Based on the prevailing near-term technical outlook, the 100-day exponential moving average (EMA) limits movement to the upside at $0.4727. On the other hand, the cross-border money transfers token maintains support at $0.46, with the 200-day EMA in position at $0.4574.
XRP price lags bull flag pattern breakout
The sixth largest cryptocurrency, with a market cap of $24.5 billion and a trading volume of $435 million, is patiently waiting for the next big break, thanks to the formation of a bull flag pattern on the daily chart.
A bull flag pattern is a bullish continuation pattern that shows a pause in an uptrend, for example when XRP price exploded from $0.413 to $0.56 in May. The pattern consists of three different parts and consists of a flagpole, a flag and a breakaway.
A strong rise in price creates the flagpole, the flag is a consolidation phase with parallel support and resistance lines, and the breakout occurs when the price resumes the uptrend.
Traders monitoring new buy orders in XRP may want to be ready to trigger them as soon as the price breaks above the resistance of the pattern. Conservative investors may want to hold on until the token clears the $0.48 resistance, with $0.52 and $0.58 as potential profit targets.
XRP/USD Daily Chart | Trade view
For now, the path of least resistance is neither up nor down. This lethargic technical outlook supports the horizontal movement of the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators.
Buyers will redouble their efforts on XRP as the blue MACD line flips above the red signal line. At the same time, the RSI should weaken towards an uptrend targeting the overbought region.
The longer a breakout slows, the more XRP price will come under increasing pressure from the bears, which could weaken the $0.46 support, then one provided by the 200-day EMA (in purple) .
Drops below the buyer congestion zone are likely to alter the technical outlook, with XRP price plausibly falling to test support at $0.44 and $0.4, respectively.
John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
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