Ripple (XRP) and Cardano (ADA) Nearing Major Breakouts: Price Analysis
With Bitcoin (BTC) recently recording its own big breakout, the altcoins are not likely to be far behind. Both Ripple (XRP) and Cardano (ADA) are moving into position for breakouts. Could this happen in the next day or two, or could there be a rejection first?
$XRP approaches horizontal resistance plus trendline
Source: TradingView
The $XRP price is on its way back to a descending trendline in force since the all-time high last July. Three touches of the trendline have now taken place, which puts the next touch on alert for a breakout.
As can be seen in the 4-hour chart above, the price will not only have to break through the trendline, but also the big horizontal resistance at $3. Much will depend on whether Bitcoin can continue positive price action. If $BTC starts to fall back, the chances are that $XRP will do the same, especially given that the short-term momentum indicators have reached their tops.
Bearish divergence finished, or more downside to come?
Source: TradingView
The weekly time frame for the $XRP price reveals how important the band of resistance from $2.98 to $3.00 is. If the bulls can push the price up through this, plus the descending trendline, and confirm above, all would be set for the next all-time high and a move into price discovery.
However, things are never usually this easy. Bearish divergence has been playing out for the last 12 weeks, given that the Stochastic RSI and the RSI were in downtrends, while the price action made a higher high. It remains to be seen whether the bearish divergence has now finished, or whether there may be some more downside to come.
If the price does fall back, the horizontal resistance level at $2.70 looks very strong. If the price got back here and bounced, this could coincide with a flip back to the upside for the Stochastic RSI indicators, plus a break of the descending trendline in the RSI.
Descending trendline real barrier to $ADA bulls
Source: TradingView
The 4-hour chart for $ADA reveals how the price looks to be taking hold above the $0.85 horizontal support level. If it does so, the long-time major descending trendline is only a short distance above.
Thus far, this trendline has been a real barrier for the $ADA bulls. Several big fakeouts bear testament to how difficult it has been for the bulls to maintain the price above. That said, it looks like another attempt is soon to be made. With all the short-term momentum indicators at their very tops, this is not going to be an easy undertaking.
Successful bull market on the line for $ADA
Source: TradingView
The weekly time frame puts things into perspective for the $ADA bulls. For these last few years the bears have been firmly in control. That said, zoom forward to today, and it can be seen that something has to give. The price is squashed into a relatively tiny space between the descending trendline/resistance and the strong horizontal support. The direction that the price takes from here will likely decide the direction for the rest of this bull market. Success for the bulls would be measured by a breakout and confirmation, and then a higher high above $1.33. Anything less, and the bull market could be over for $ADA.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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