The price of XRP increased significantly over the weekend, rebounding from a low of $0.627 on Friday.
This morning’s downward turn bounced off a multi-week declining trend line.
Ripple is made or broken for the run higher toward $0.784 with another triangular formation.
With the overall strong recovery in cryptocurrencies, the XRP price was also blessed this weekend. The majors, such as Bitcoin and Ethereum, achieved substantial increases, then sentiment swung with profit-taking, wiping out the weekend gains.
Ripple made a strong comeback over the weekend, rising from $0.626 to $0.707, a 13 percent gain that was squared during Monday’s Asian session. The top cryptocurrencies were unable to hold their gains and brought the rest of the market down with them, resulting in a loss of parity.
But that doesn’t rule out the possibility of more gains. When the price of XRP fell below $0.626 and broke the symmetrical triangle to the downside, the trend shifted lower. After bouncing off that level, Ripple surged higher to $0.708, which appears to be in line with the peak of the candle that produced the break to the downside from last week’s wide triangular formation.
Meanwhile, it appears that the price of XRP formed a new triangle during the weekend, forcing it into a smaller range with higher lows and lower highs. A break to the downside appears to be set once more, although a test of $0.626 should suggest a return of buyers.
The fact that nothing fundamental has changed in the markets has prompted buyers to enter. Globally, there is still a risk-on mood in the markets, and unfavorable news about cryptocurrencies and laws is fading into the background.
Chart of XRP/USD on a daily basis
The price of XRP breaking to the downside from the smaller triangle should not be a red flag for purchasers. Ripple is trading just below the $0.626 mark, which it held over the weekend. Look for the $0.50 mark as an attractive place to purchase the dip if Ripple breaks lower./n
