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$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.
Key Point
- $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.
Recent $XRP Price Action
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.
Scalp Targets
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.
