How long will this consolidation last?

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  • Ripple’s XRP adds more than 1% as the entire market bulls wake up from the slumber.
  • Ripple’s current consolidation is likely to continue towards the weekend trading.

As the week’s trading comes to an end, digital assets are correcting higher from the losses recorded after the new year celebrations. As we have discussed for several days, Ripple failed to sustain the Christmas rally above $0.4 and trimmed the gains towards the support at $0.35.

The price also formed a bullish flag pattern which later culminated into a breakout that made it above both the 50-day and the 100-day Simple Moving Averages (SMAs). The breakout recovered above $0.38 but was unable to zoom past $0.385. XRP/USD opened the trading yesterday around $0.38 but closed the session at $0.36.

There has been a slight upside correction with the price adding 1.15% today. Ripple’s XRP is currently valued at $0.365 and is immediately battling with the 100 SMA resistance. A move above the moving average will pave the way for addition move past the 50 SMA and eventually attack $0.37 in readiness for the move towards $0.4.

Ripple’s current consolidation is likely to continue towards the weekend trading. The MACD on the same chart is holding tight to the mean line. However, a break into the oversold region will see the asset embark on the move described above. Meanwhile, a reversal will support at $0.360 – $0.350.

XRP/USD 1-hour chart

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