Key Takeaways:
- XRP, the native token of the blockchain startup Ripple Labs, is poised for more gains ahead, according to a trading pattern dubbed the ‘Ascending Channel’.
- The digital asset could gain another 40% and hit $1.77 in the upcoming sessions.
- If the previous prediction pans out as well, a 118% gain for XRP is also possible.
YEREVAN (CoinChapter.com) – XRP opened the week with an 8.5% upside move. In addition, the digital asset formed an Ascending Channel that could put another 40% onto its value and raise its exchange rate against the U.S. dollar to $1.77, a two-month high for the Ripple blockchain token.
Notably, the Ascending Channel consists of two parallel trendlines. They enclose the price action and prevent sharp moves in either direction. Thus, while the pattern itself does not predict XRP’s future bias, it is instrumental in determining the short-term price action progress.
Also read: XRP price eyes breakout as Ripple Labs wins right to hide 'privilege logs' from SEC.
XRP traded for $1.28 during the Asian-Pacific session Monday and came closer to a significant support/resistance line at $1.30. If the digital asset breaks above the said line, it could climb up to the Channel’s upper border and then retest the $1.30-level as support.
What’s ahead for XRP?
Moreover, XRP bears are under pressure, as the token broke the stiff resistance preventing bullish breaks since mid-April. As CoinChapter discussed in the previous review, XRP traded in a Symmetrical Triangle for over seven months and broke out of the formation on Nov 3.
If the previous prediction has merit, the digital asset is on its way to $2.80, a 118% gain, and a new all-time high.
Also read: XRP gains 10% while wrapped XRP to launch on Ethereum in December.
Additionally, the cryptocurrency’s relative strength index (RSI; purple graph at the bottom of the chart) climbed to 67. In detail, the momentum indicator reflects the traders’ level of confidence in the asset. Thus, a high RSI between 50 and 70 displays their readiness to invest and support the uptrend.
XRP is the 7th largest cryptocurrency, with a market cap north of $60 billion. However, its price action and overall bias partially depend on the leading digital assets: Bitcoin and Ethereum. The latter gained 12% in the past week and could register a new all-time high if it closes the Monday session above $4,670.
The alpha crypto also looks bullish as the BTC/USD rate stood at $66,005 in the Asian-Pacific session, with an 8.5% weekly gain. Should the tendency continue, XRP could see more green candles on the charts and reach the two-month high of $1.77 and an all-time high of $2.80.
