XRP experienced a gradual decline, finishing the week with its resistance point at $1.2260 until the $1.07 mark. As prices consolidate, a forming descending triangle can indicate a potential breakdown in the future.
Traders analyzed a bearish tendency, as prices go below the 4-hour 20-SMA and 50-SMA. Traders place the first area of support at $1.04 and the last support level at $0.8966.
Unless XRP finds a bullish catalyst, the Relative Strength Index shows signs of going south.
However, traders remain optimistic about the price as a potential correction that can lead towards the continuing uptrend that Ripple experienced since October.
Most traders see this correction as a buying opportunity, involving fundamental and technical analysis in creating long-term trends. Many traders attributed this descending triangle pattern to the ongoing legal battle with US securities regulators.
However, traders remain optimistic about the rising XRP influences in many financial institutions in Asia and India.
Thus, although traders expect a potential breakdown in the future, they see it as an opportunity to acquire Ripple at a discount in expectation of its progress in other countries.
Involving fundamental analysis in the technical side of trading also makes some traders expect a breakout in the future.
Although most descending triangles signify a reversal in the pattern, some patterns also signify a breakout opportunity where investors can take short-term profits.
As soon as Ripple finds a victory in the US SEC issue, the company could experience a correction towards the current uptrend.