Ripple (XRP) Setting Up for a Breakout as Bullish Pennant Forms
Ripple (XRP/USD) Price, Analysis and Chart:
- Ripple showing a bullish set-up.
- Volatility remains high.
The third-largest cryptocurrency, and one of the most popular retail coins, Ripple is setting up a bullish technical pattern that may well cause a break higher in the near-term. The coin is completing a basic bullish pennant formation, driven by lower highs and higher lows, and a breakout seemingly nears.
The rest of the daily XRP chart remains positive as well, with the Ripple above all three moving averages, while the CCI indicator is back out of overbought territory. Volatility remains high, leaving room for a breakout.
Ripple (XRPUSD) Daily Price Chart (June – December 7, 2020)
Retail trader data show 92.92% of traders are net-long with the ratio of traders long to short at 13.13 to 1.The number of traders net-long is 0.71% higher than yesterday and 3.16% lower from last week, while the number of traders net-short is 4.39% higher than yesterday and 17.82% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Ripple prices may continue to fall.Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Ripple price trend may soon reverse higher despite the fact traders remain net-long.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.