The long period of consolidation which took place in XRP came to an end this week as significant price increases took place across the cryptocurrency market.
The price action in XRP had been forming Doji candles and small-bodied candles since early January reflecting high levels of uncertainty from traders regarding future price direction.
The price increase surprised some traders, like the professional trader Peter Brandt who was anticipating that XRP could see a price breakdown due to the nature of descending triangle patterns that move to the apex.
Dynamics at work in a massive descending triangle that moves to apex.
1. Mkt is manipulated
2. Manipulators support at fixed level
3. But are forced to lower their selling price as time goes on
4. If (when) support gives way, desperation will ensue$XRPUSD pic.twitter.com/RmJaYiC8KY
— Peter Brandt (@PeterLBrandt) March 21, 2019
After the XRP price increase this week, Brandt tweeted:
I am actually impressed that the bag holders defended it.
— Peter Brandt (@PeterLBrandt) April 3, 2019
The increase recorded early this week has brought the XRP price significantly above resistance at $0.313 with price currently trading near $0.36.
A bearish divergence is now forming between the price and RSI on the daily chart indicating that a trend reversal may take place.
Prior to the increases this week, the price of XRP was recording weaker price action than other major cryptocurrencies indicating that a reversal could make sense after the increases.
While most cryptocurrencies were slowly increasing or consolidating prior to the increase this week, XRP was recording weak price action with a recent drop below support at $0.295 to $0.277.
Stellar Lumens Analysis
The cryptocurrency of the Stellar network, Stellar Lumens (XLM), had been one of the top cryptocurrencies which had been recording stronger price action in comparison to XRP.
Stellar has been gradually appreciating since early February recording a small loss in trading two weeks ago and following up with a second wave of buying last week.
The rapid price increases this week have brought price above $0.127, the level where the price dropped to during the bearish declines in November.
The price of Stellar has already risen above $0.127 three days this week but has failed to close significantly above.
The initial rise above on Wednesday quickly found selling pressure to bring the price significantly back below.
Stellar’s price retested to close above on Friday, but price action on Saturday brought the price back below.
However, the price looks likely to close above today as it currently trades at $0.13.
A close above may result in $0.127 starting to act as a support level.
A bearish divergence pattern is also forming on the daily for Stellar, but a reversal is less likely in Stellar than XRP.
While XRP seems to have increased with the market, Stellar had already been recording more bullish price action recently, and the weekly RSI and MACD for Stellar have been increased to reflect this.
- Bearish divergences are forming on the daily charts for both XRP and Stellar with a reversal in XRP looking more likely given its recent weak price action.
- Stellar has risen above $0.127 and looks likely to close above.
- The weekly RSI and MACD have been increasing in Stellar reflecting increasing amounts of buying pressure since early February.
Bearish Divergences May Signal Price Trend Reversal in XRP and Stellar [Price Analysis] was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.