XRP Gets Rejected Down: Analyst Predicts Bottom Target

Keshav Verma

1 year ago

3 mins read

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An analyst has revealed the level of XRP might observe a pullback following the latest rejection in the cryptocurrency’s price.

XRP Has Seen Rejection At Mid-line Of An Ascending Parallel Channel

As explained by analyst Ali in a new post on X, XRP has appeared to have been moving inside an Ascending Parallel Channel recently. An “Ascending Parallel Channel” refers to a pattern in technical analysis that’s used for identifying uptrends and potential reversal points for any asset’s price.

As the name already suggests, the pattern involves two parallel lines that make up the “channel” within which the price action is mostly contained. The upper line is made by connecting higher highs, while the lower one strings together higher lows.

At the upper line, the asset might be more likely to feel some resistance and get rejected back inside the channel, while the lower line could provide support to it.

In the scenario that the price makes a breach of these channel lines, a sustained break might take place. Naturally, a breakout above the upper line would be a bullish one, while that below the lower one could signal the continuation of the bearish trend.

Like the Ascending Parallel Channel, there is also the “Descending Parallel Channel,” which is obviously a pattern used whenever the market is showing a clear trend towards the downside.

Now, here is the chart shared by Ali that shows an Ascending Parallel Channel that XRP has been stuck inside for quite some time now:

The parallel channel that the asset has been moving inside recently | Source: @ali_charts on X

As is visible in the graph, XRP’s price top back in July of this year coincided with a temporary break above the upper line of this Ascending Parallel Channel pattern. Since this rejection, the asset hasn’t yet been able to revisit the level.

In the chart, the analyst has also drawn a third line: the mid-point between the two parallel trend lines of the pattern. This line has also appeared to have acted as resistance for XRP during the duration it has traveled inside the channel, as it has often hit local tops on interactions with it.

Recently, after bottoming out at the lower level following the earlier rejection, the asset climbed towards this middle line and made a retest of it. The coin appears to have been rejected from it, however, as it has been sliding down since then.

“After facing rejection at the channel’s mid-line, XRP might see a pullback toward the lower boundary, around $0.55,” explains Ali. At the time the analyst had posted the chart, the asset had been trading around $0.618, but since then, it has observed a further 5% drawdown.

With the coin continuing to show decline, it would appear possible that it might go all the way to the $0.55 level Ali has pointed out, before finding a potential reversal. From the current price, such a drop would suggest a decrease of over 6%.

XRP Price

XRP has plunged towards $0.585 today as the cryptocurrency market as a whole has seen red returns.

Looks like the price of the asset has seen a sharp decline during the past day | Source: XRPUSD on TradingView

Featured image from Shutterstock.com, charts from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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