XRP/USDT: Weekly Breakout Analysis 1W (Jul. 29)

X Force Global Analysis:


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In this analysis, we explore XRP's weekly chart through bullish reversal patterns and the Elliott Wave theory.

Analysis

- To begin with, it's important to note that XRP has been consolidating within a descending wedge for a very long time
- A bullish descending wedge during a downtrend is typically identified as a bullish reversal pattern
- XRP is currently testing the Ichimoku cloud resistance, and a break and close above for confirmation is necessary for further rally
- The Relative Strength Index (RSI) has broken out of a descending trend line resistance, reaching record high levels in months
- Nevertheless, the RSI remains at neutral levels
- The Moving Average Convergence Divergence (MACD) has formed a golden cross a while back, but seems as though the trend lacks momentum to drive prices forward to new highs
- Counting Elliott Impulse Waves (12345), we could expect this current uptrend as wave 3 playing out.

What We Believe

While XRP's setup remains extremely bullish, we have yet to witness an actual breakout through the descending trend line resistance and the Ichimoku cloud. Should confirmation be provided, we could expect a bullish rally leading to record high levels this year.

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