The ongoing correction in XRP coin price is following a famous bullish pattern called the ‘flag pattern’. This continuation pattern encourages a temporary retracement phase to replenish the bullish momentum as it eventually leads to a sustained recovery upon the breakout out of its resistance trendline. By the press time, the Ripple coin price was $0.395, with an intraday of 0.55%. However, excluding the influence of flag pattern, there are three reasons why XRP price may witness significant rally in 2023
Formation Of Bullish Pattern
The XRP price in the weekly time frame chart shows the formation of a double bottom pattern. This bullish reversal pattern is often spotted in the market bottom and could lead to a significant Bull run.
During this pattern formation, the prices rebounded twice from particular support indicating strong accumulation from traders. Amid the recent recovery in the crypto market, the XRP price bounced back from the $0.311-$0.371 support zone and is currently forming the right wing of this pattern.
In ideal consolidation, this bullish pattern may drive the price to the $0.55 neckline resistance of this pattern. Anyhow, a potential breakout from this neckline will trigger the bullish pattern and intensify the buying pressure in the market.
XRP Coin Near To A Strong Support Zone
As mentioned above the $0.311-$0.371 level formed the base support of the double bottom pattern. Over the past seven months, the has rebounded from the mentioned support, indicating the buyers are actively accumulating at these levels.
The multiple reversals indicate this level has prevented aggressive sellers from plunging the coin any lower. Thus, the sidelined buyers waiting for any entry opportunity could buy around the $0.311-$0.371 mark.
Bullish Signal From Technical Indicator
While the XRP price action seems nearly sideways, the weekly RSI slope indicator shows an evident rise. The Relative Strength Index (RSI) is a popular technical analysis indicator used to measure the strength of asset price action by comparing the magnitude of its recent gains to its recent losses.
Thus, the bullish divergence in the RSI slope indicates the increasing buying pressure at $0.311-$0.371 support and a higher possibility that traders may follow the double bottom pattern.
- Resistance Levels: $0.422 and $0.55
- Support Levels: $0.38 and $0.361
