Ripple (XRP) has finally entered an ascending channel after a prolonged period of bearish momentum. The price has now found support above the 21 EMA and is likely to continue trading upwards in the ascending channel. RSI for the XRP/USD 4H chart above is now all set to break out of the triangle it has been trading in for the past few days. EMA alignment continues to remain bearish but there is hope of a trend reversal at this point.
The price has formed a series of higher highs and higher lows over the past few days on the 4H chart. Ripple (XRP) is currently in a strong uptrend. RSI looks favorable for a run up to the top of the ascending channel. The price is currently trading at $0.32 and might soon cross $0.4 if it holds the 21 EMA support and continues upwards from here. Ripple (XRP) did not react favorably to positive news of exchange partnerships last week. It is possible that the current rally is a reaction to that news considering most other coins are still in a phase of uncertainty.
If Ripple (XRP) falls below the 21 EMA, it will still have support at the 50 EMA, which has served as a solid support in the past on the 4H timeframe. In addition to that, the lower limit of the ascending channel will serve as additional support. Ripple (XRP) thus has three solid supports it will have to break in order to fall lower from here. The probability of that happening is very low which is why the most likely scenario is that Ripple (XRP) will continue its uptrend from here.
While Ripple (XRP) appears to be in a solid uptrend on the XRP/USD chart, it does not seem to be doing too well against Bitcoin (BTC). The XRP/BTC 4H chart above shows that the price can fall further in the near future. The MACD diagram corroborates the same as it appears to have topped out. RSI analysis for the above chart shows that the price has one last wave to go down before it can move up to break out of the RSI falling wedge.
The XRP/BTC chart above additionally shows that the price formed a series of higher high and higher lows last week. However, since the beginning of this week, the price has broken the higher highs and higher lows pattern as the price formed a lower high. The price is now resting at the 200 EMA support, breaking which it will fall directly to the 50EMA and towards the trend line on the above chart at the same time. This may be a sign of temporary weakness but as long as Ripple (XRP) trades above this trend line, the price is expected to rise in the days to come. The strength with which Ripple (XRP) has begun a new rally suggests that the price might just have found a bottom and is now ready for a trend reversal.