Over the last five weeks, the XRP price has been resonating between the two diverging trendlines, indicating the formation of an expanding wedge pattern. The coin price retested the pattern’s downsloping trendline several times, indicating the traders are actively responding to this technical setup and, therefore, should do the same for its potential target; here’s how you may trade this pattern.

Key Points: 

• The formation of an expanding wedge pattern is a sign of increasing volatility in any asset price.
• A potential breakout from this pattern’s key trendline level may bolster the XRP price in a sustained and directional rally. 
• The intraday trading volume in the XRP is $469.7 Million, indicating a 37% gain.

Source- Tradingview

Amid this week’s downfall in the crypto market, the XRP price turned down from the combined resistance of the downsloping trendline and $0.41. The resulting downfall plummeted the coin’s market value by 9.7%, where it reached the $0.37 support.

By the press time, the coin price is at the $0.377 mark and shows lower price rejection candles at the $0.37 support. Previously the altcoin has rebounded from this support twice, indicating the buyers are actively accumulating at this level.

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Thus, these rejection signs indicate a higher possibility for a bullish reversal and undermine the ongoing bear cycle with the expanding channel. If the bullish pressure persists, interested traders must for an overhead trendline breakout to look for entry opportunities.

This potential breakout may release the XRP price from ongoing uncertainty and encourage a price rally to $0.43.

On a contrary note, a bearish breakdown below the $0.37 support may encourage further downfall.

Technical Indicator

Relative Strength Index: a slight bullish divergence in the daily RSI slope when XRP price retested the $0.37 support indicates growth in underlying bullishness and additional confirmation for uptrend continuation.

EMAs: The flattish 50-and-200-day EMA accentuates an overall sideways trend.

XRP Intraday Price Levels

• Spot price: $0.37
• Trend: Bearish
• Volatility: High
• Resistance level- $0.385 and $0.41
• Support level- $0.37 and 0.35