XRP Consolidates in Descending Wedge, Analysts Eye 25% Bounce From $1.20 Support

XRP is consolidating within a price channel, presenting an opportunity for scalp traders looking to leverage the market trend.

Notably, the XRP chart has looked similar to that of large-cap cryptocurrencies in recent days. Instead of the highly volatile price swings recorded earlier, the coin has started to settle around a key support area, presenting a good opportunity for speculators who trade price ranges.

• XRP is consolidating within a price channel, presenting an opportunity for scalp traders looking to leverage the stable market trend.
• Chart data highlights that XRP has been in a descending wedge on the 4-hour timeframe, shuffling between the structure’s upper resistance and lower support trendlines.
• There remains a chance that XRP could drop further from here to the channel’s lower support level at $1.2.
• After this, XRP may pull back to $1.40 or $1.50, an 18% and 25% increase from the wedge’s support at $1.20.

Pseudonymous market analyst JimmyTok shared this opportunity in a March 3 TradingView analysis. There, the market watcher shared a 4-hour chart highlighting that XRP has been in a descending wedge, representing a good opportunity for scalpers.

Usually, an asset in a consolidatory wedge shuffles between the structure’s upper resistance and lower support trendlines, providing an avenue for traders to short and long at each point and benefit from the short-term price swings.

This price trend has been in play since the February 15 peak of $1.67. XRP rallied to the level in a failed attempt to sustain recovery to higher prices. It built this momentum after a February 6 drop to a 15-month low of $1.11, but bears regained control after the $1.67 peak.

From there, XRP entered this range, making lower lows and lower highs. Notably, the last notable swing was an attempt to break out on March 2, when the coin reached a high of $1.42, but resistance in the area neutralized the upward momentum. This has opened up a scalp opportunity.

According to the analysis, XRP would drop further from here to the channel’s lower support level. Specifically, this targets a dip to $1.2, representing an 11.76% correction from the current market price of $1.36. This would mark a 23.52% return on a 2x leverage and a 58.8% gain on a 5x leverage for short traders.

After this, the market commentator predicts a pullback to $1.40 or $1.50. This suggests a breakout from the descending channel, as these price levels surpass the upper resistance trendline around $1.37.

The chart shows that the first target of $1.42, an 18% rise from the channel’s support trendline, is resistance that XRP must overcome to confirm a breakout from the wedge. Breaking this paves the way for a 25% increase from the $1.20 support to $1.50.

However, these targets are solely based on the analyst’s market outlook and do not represent financial advice. There’s no guarantee they will play out as uncertainty continues to ravage the cryptocurrency market. Moreover, XRP has been consolidating, and a break in any direction remains very likely depending on the broader market conditions.