XRP, the native token created by San Francisco-based Ripple, has entered a consolidation period following recent double-digit price gains, according to technical analysis.
XRP surged 12.4% over the past week. The surge also follows the news of a partnership between Ripple and crypto platform Uphold to improve cross-border payment infrastructure. However, XRP now appears to be taking a breather based on chart patterns and indicators.
According to analysis from altFINS, XRP had been trading in an ascending triangle pattern, which is a bullish continuation pattern that typically breaks out upwards. Last week, XRP broke out above the key resistance level of $0.55.
Source: altFINS – Start using it today
altFINS notes the breakout signals a potential resumption of XRP’s uptrend. However, the token has since stalled between $0.55 and $0.60 as it enters consolidation. This period allows XRP to establish support and gather momentum for the next potential leg up.
On short timeframes, XRP remains in an uptrend. But zooming out, the long-term trend remains downward. Key support sits around $0.45, while initial resistance stands at $0.68.
Traders will be watching to see if XRP can gain enough momentum to break out of its consolidation and confirm the upside breakout. A move above $0.68 could open the door for a continued rally, though XRP may see selling pressure around psychological resistance at $1.
The recent Ripple-Uphold partnership provides a fundamental catalyst for XRP adoption. However, the token’s price action suggests traders are still cautious following XRP’s drawdown from its peak. Sustained moves above key resistance levels will be needed to confirm a trend change.
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