Most major cryptocurrencies are consolidating today. However, some exceptions include Tron and Cardano which are both showing strong price performances.
A descending triangle pattern is a bearish trend continuation pattern.
It makes it more likely that the next significant move for XRP will be a break below this pattern.
XRP is currently forming its third consecutive daily Doji candle evident of the price consolidation which has been taking place near the top of the descending triangle pattern.
A Doji candle is a candle where the open and close are around the same point.
It is characteristic of the current consolidation and typically precedes a significant move.
The four-hour chart shows in closer detail how price action is reacting to the descending triangle pattern.
Price has tested the trendline of the triangle on five occasions as indicated by the black arrows.
The most recent candle is showing the price starting to depreciate from this point.
If price can break above the descending triangle, resistance is expected to come into play in the $0.39 to $0.4 area.
This has been an important area of liquidity in the past for XRP and has acted as a point of resistance on numerous occasions as illustrated by the daily chart.
Ripple Labs, who hold a large percentage of XRP and offer services that utilize the token, recently surpassed 200 customers while XRP also received its first endorsement from a bank.
— [blokt] – Bitcoin, Blockchain & Cryptocurrency (@bloktcrypto) January 9, 2019
- XRP continues to trade in a descending triangle pattern as most major cryptocurrencies consolidate today.
- The descending triangle pattern makes it more likely that the next significant move in XRP will be to the downside.
- In the event that the next significant move is to the upside in XRP, $0.39 to $0.40 is expected to act as an area of seller liquidity and resistance.
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