Ripple‘s XRP started the new week within a zone between strong support at $0.46 and significant resistance at $0.5. The popular altcoin, which has been moving around $0.46 during the Asian trading session, has been standing almost exactly where it stopped since the weekend.
XRP Price Could Soar with Bull Flag Breakout
According to the current short-term technical outlook, the 100-day Exponential Moving Average (EMA) limits the upward movement at $0.4727. On the other hand, the cross-border money transfer altcoin manages to stay above the $0.46 support, while its 200-day EMA stands at $0.4574.
The sixth-largest cryptocurrency by market value of $24.5 billion and trading volume of $435 million, also the fifth largest altcoin, appears to be preparing for the next big breakout thanks to a Bull Flag formation on the daily chart. The Bull Flag formation is a continuation pattern that indicates a pause in the uptrend, as it happened when the XRP price jumped from $0.413 to $0.56 in May. The formation consists of three different stages: the flagpole, the flag, and the breakout. The sharp rise in price forms the flagpole, the flag is a consolidation stage with a parallel support and resistance line, and the breakout occurs when the price continues the upward trend.
Investors waiting for a new purchase in XRP might want to take action as soon as the price rises above the resistance of this formation. More cautious investors might benefit from waiting until the altcoin exceeds the intermediate resistance at $0.48. In both cases, the next ordered targets for XRP will be $0.52 and $0.58.
The Worst-Case Scenario for XRP
The more a breakout required for an uptrend formation delays, the more the price falls under the pressure of the bears. For XRP, this means that the support offered to the price by the $0.46 support and the 200-day EMA (purple) is weakening every day.
Falls below the buyer congestion zone in XRP could lead to a negative turn in the technical outlook and the XRP price could move towards the intermediate supports at $0.44 and $0.4 respectively.
