XRP Gets Rejected Down: Analyst Predicts Bottom Target
December 18 2023 - 11:30AM
NEWSBTC
An analyst has revealed the level of XRP might observe a pullback
following the latest rejection in the cryptocurrency’s price. XRP
Has Seen Rejection At Mid-line Of An Ascending Parallel Channel As
explained by analyst Ali in a new post on X, XRP has appeared to
have been moving inside an Ascending Parallel Channel recently. An
“Ascending Parallel Channel” refers to a pattern in technical
analysis that’s used for identifying uptrends and potential
reversal points for any asset’s price. As the name already
suggests, the pattern involves two parallel lines that make up the
“channel” within which the price action is mostly contained. The
upper line is made by connecting higher highs, while the lower one
strings together higher lows. Related Reading: Analyst Rates
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Of $120,000 At the upper line, the asset might be more likely to
feel some resistance and get rejected back inside the channel,
while the lower line could provide support to it. In the scenario
that the price makes a breach of these channel lines, a sustained
break might take place. Naturally, a breakout above the upper line
would be a bullish one, while that below the lower one could signal
the continuation of the bearish trend. Like the Ascending Parallel
Channel, there is also the “Descending Parallel Channel,” which is
obviously a pattern used whenever the market is showing a clear
trend towards the downside. Now, here is the chart shared by Ali
that shows an Ascending Parallel Channel that XRP has been stuck
inside for quite some time now: The parallel channel that the asset
has been moving inside recently | Source: @ali_charts on X As is
visible in the graph, XRP’s price top back in July of this year
coincided with a temporary break above the upper line of this
Ascending Parallel Channel pattern. Since this rejection, the asset
hasn’t yet been able to revisit the level. In the chart, the
analyst has also drawn a third line: the mid-point between the two
parallel trend lines of the pattern. This line has also appeared to
have acted as resistance for XRP during the duration it has
traveled inside the channel, as it has often hit local tops on
interactions with it. Recently, after bottoming out at the lower
level following the earlier rejection, the asset climbed towards
this middle line and made a retest of it. The coin appears to have
been rejected from it, however, as it has been sliding down since
then. “After facing rejection at the channel’s mid-line, XRP might
see a pullback toward the lower boundary, around $0.55,” explains
Ali. At the time the analyst had posted the chart, the asset had
been trading around $0.618, but since then, it has observed a
further 5% drawdown. Related Reading: Bitwise Reveals Two Major
Triggers That Will Send Bitcoin Price To $80,000 With the coin
continuing to show decline, it would appear possible that it might
go all the way to the $0.55 level Ali has pointed out, before
finding a potential reversal. From the current price, such a drop
would suggest a decrease of over 6%. XRP Price XRP has plunged
towards $0.585 today as the cryptocurrency market as a whole has
seen red returns. Looks like the price of the asset has seen a
sharp decline during the past day | Source: XRPUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com
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