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The month of September has not been kind to XRP. As a result of multiple mini-crashs during the month, XRP’s 30-day ROI fell to more than 12%. With little interest from retail traders, XRP has been unable to keep up with some of its peers.
A falling wedge pattern, on the other hand, hoped to inject some life into the stale market. At the time of writing, XRP was trading at $0.93, up 2.6 percent in the previous 24 hours.
XRP Daily Chart
Since September 7th, XRP has been forming a falling wedge pattern, which usually results in an upward breakout. Before achieving such a result, it was critical to understand the market’s current dynamics.
XRP traded below its 200-SMA (green), indicating a bearish trend. Furthermore, the majority of its indicators were bearish. When combined with the broader market’s weakness, XRP was due for some further losses before a breakout can be expected. These losses could extend to the $0.75-$0.78 support level, eliciting a strong reaction from buyers. Any movement below this would result in more bleeding.
Bullish traders can expect a breakout once XRP shows signs of a reversal between $0.75 and $0.78. A strong volume rebound would increase the likelihood of a return to the $1 level. Then, price ceilings of $1.05, $1.12, and $1.30 would be challenged.
Since mid-August, the RSI for XRP has been declining. The RSI would extend to lower levels before reversing trajectory based on the sloping trendline. The index was dragged below its half-line by a bearish twin peak on the Awesome Oscillator, and the MACD did not fare much better. Each of these readings drew more sellers, exposing XRP to additional losses.
Based on the abovementioned factors, XRP would continue to shed its value in the coming days. However, a support zone of $0.75-$0.78 was XRP’s best bet to trigger an upwards breakout from its falling wedge. This would pave way for a comeback above $1, and possibly towards $1.29 in an extreme bullish scenario.