XRPUSD - Waiting for a new pattern
Updated
Given the recent bullish price action in BTCUSD, XRPUSD has been able to break out of its descending channel formation. Before trading within the descending channel, XRPUSD also traded within a descending triangle formation between May 14 and May 27.
After breaking out of the triangle, XRPUSD spiked from a low of 0.37 to a high of 0.48 before the descending channel was formed. Since XRPUSD has broken out of the descending channel very recently, it has not established a new pattern yet.
I do believe that XRPUSD has the potential to test the previous highs of 0.48 and potentially break these highs. According to Fibonacci levels, breaking these previous highs could send price action to the low to mid 0.50's, or even 0.60s. However, Fibonacci levels also indicate that until these highs are broken, there is much potential for retracement at many points.
After breaking out of the triangle, XRPUSD spiked from a low of 0.37 to a high of 0.48 before the descending channel was formed. Since XRPUSD has broken out of the descending channel very recently, it has not established a new pattern yet.
I do believe that XRPUSD has the potential to test the previous highs of 0.48 and potentially break these highs. According to Fibonacci levels, breaking these previous highs could send price action to the low to mid 0.50's, or even 0.60s. However, Fibonacci levels also indicate that until these highs are broken, there is much potential for retracement at many points.
Note
Final Verdict: The 1 level (0.48) has been tested numerous times, however XRPUSD failed to remain and consolidate above this level. This is largely in part due to the recent major correction in Bitcoin.
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