Cryptocurrency could be aiming at new price spike despite most recent correction
XRP has been showing one of the strongest price performances in the cryptocurrency market for the past two weeks. However, a short-term price correction pushed the asset back to local support at the 200-day SMA, and a new pattern is now forming.
According to the daily chart, XRP is forming an ascending channel after the upward surge. After an asset enters a channel, it causes volatility to decrease, which then leads to a breakout.
Meanwhile, XRP is moving further towards the lower boundary of the channel, gradually shifting upwards. The most likely scenario from here is a calm movement until the bulls are ready to provide additional buying support for the asset and take a stronger move once again.
Volume profiles paint grim picture
Unfortunately, some indicators show that the asset is on its way down as it slowly loses the support of investors, who previously caused a massive 61% price surge. Descending volume profiles act as preliminary signs of a reversal, but do not have high accuracy.
Despite all the technical signals and movement of funds in the market, Ripple’s success in court against the SEC is the main growth fuel for XRP, although not directly related to the company at this point.
Most likely, Ripple will end up winning in court, considering the large win streak, which is an extremely positive sign for XRP holders. At press time, it is trading at $0.48, having faced an 8% reversal after reaching the local high at $0.54. The trading volume has returned to the pre-pump level at 200 million XRP per day on Binance.
