XRP price rose by 5% today, December 2, erasing some of the losses made on Monday when Bitcoin and most altcoins dived.Ripple token rose to $2.1440, and a rare chart pattern points to an eventual rebound in December as all XRP ETFs near an important $1 billion milestone.
XRP Price Technical Analysis Shows that a Falling Wedge Pattern Has Formed
A look at the XRP price’s daily chart sends a signal that bears are in control and that the downward momentum will continue. For example, the token has continued to form a series of lower lows and lower highs, has formed a death cross pattern, and remains below the Supertrend indicator.
However, a closer look at the chart shows that it is slowly forming a falling wedge pattern, which is one of the most common bullish reversal signs in technical analysis.
The upper side of this pattern connects the highest swings on October 2 and 27 and November 10 and 28. On the other hand, the lower side links the lowest swings since August this year, and the two lines are now nearing their confluence, meaning that a rebound could be near.
The other bullish catalyst for the XRP price is that the two lines of the MACD indicator have formed a bullish divergence pattern, which happens when an indicator is rising as the price retreats. It normally sends a signal that the downtrend is losing momentum.
The same is seen on the Average Directional Index (ADX) indicator, which has continued moving downwards, and has now moved to its lowest level since October 11. An ADX is a common indicator that measures the strength of a trend.
XRP Price ChartRipple Price Forecast and Targets
Therefore, there is a possibility that the value of Ripple will rebound in the coming days or weeks. This rebound will be confirmed when the token rises above the upper side of the falling wedge. If this happens, the next key level to watch will be the psychological point at $3, which is ~40% above the current level.
On the other hand, a drop below the support at $1.8230, its lowest point on November 21, will invalidate the bullish outlook and point to more downside. It will be a sign that bears have prevailed and will be keen to push it lower.
XRP ETFs Gaining Traction
The main catalyst for the Ripple price is that demand for XRP ETFs is rising. Data compiled by SoSoValue shows that spot ETFs have had a cumulative inflow of $756 million. This is a notable situation since the first fund was launched on November 13. It has had 11 trading days since then.
The Canary XRP ETF has had $349 million in inflows, while the Bitwise, Grayscale, and Franklin have had over $167 million, $128 million, and $113 million in inflows.
All these funds now hold $723 million in assets, meaning that they will cross the $1 billion milestone soon. That is a sign that these ETFs are seeing substantial demand from American investors, which may boost its price.
Source: https://coingape.com/markets/xrp-price-slowly-forms-a-rare-pattern-as-ripple-etfs-near-1b-milestone/
