An analyst has revealed the level of XRP might observe a pullback following the latest rejection in the cryptocurrency\u2019s price.<\/p>\n
As explained by analyst Ali in a new post<\/a> on X, XRP has appeared to have been moving inside an Ascending Parallel Channel recently. An \u201cAscending Parallel Channel<\/a>\u201d refers to a pattern in technical analysis that\u2019s used for identifying uptrends and potential reversal points for any asset\u2019s price.<\/p>\n As the name already suggests, the pattern involves two parallel lines that make up the \u201cchannel\u201d within which the price action is mostly contained. The upper line is made by connecting higher highs, while the lower one strings together higher lows.<\/p>\n At the upper line, the asset might be more likely to feel some resistance<\/a> and get rejected back inside the channel, while the lower line could provide support to it.<\/p>\n In the scenario that the price makes a breach of these channel lines, a sustained break might take place. Naturally, a breakout above the upper line would be a bullish one, while that below the lower one could signal the continuation of the bearish trend.<\/p>\n Like the Ascending Parallel Channel, there is also the \u201cDescending Parallel Channel,\u201d which is obviously a pattern used whenever the market is showing a clear trend towards the downside.<\/p>\n Now, here is the chart shared by Ali that shows an Ascending Parallel Channel that XRP has been stuck inside for quite some time now:<\/p>\n\n As is visible in the graph, XRP\u2019s price top back in July of this year coincided with a temporary break above the upper line of this Ascending Parallel Channel pattern. Since this rejection, the asset hasn\u2019t yet been able to revisit the level.<\/p>\n In the chart, the analyst has also drawn a third line: the mid-point between the two parallel trend lines of the pattern. This line has also appeared to have acted as resistance for XRP during the duration it has traveled inside the channel, as it has often hit local tops on interactions with it.<\/p>\n Recently, after bottoming out at the lower level following the earlier rejection, the asset climbed towards this middle line and made a retest of it. The coin appears to have been rejected from it, however, as it has been sliding down since then.<\/p>\n \u201cAfter facing rejection at the channel\u2019s mid-line, XRP might see a pullback<\/a> toward the lower boundary, around $0.55,\u201d explains Ali. At the time the analyst had posted the chart, the asset had been trading around $0.618, but since then, it has observed a further 5% drawdown.<\/p>\n With the coin continuing to show decline, it would appear possible that it might go all the way to the $0.55 level Ali has pointed out, before finding a potential reversal. From the current price, such a drop would suggest a decrease of over 6%.<\/p>\n XRP has plunged towards $0.585 today as the cryptocurrency market as a whole has seen red returns.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n An analyst has revealed the level of XRP might observe a pullback following the latest rejection in the cryptocurrency\u2019s price.<\/p>\n As explained by analyst Ali in a new post<\/a> on X, XRP has appeared to have been moving inside an Ascending Parallel Channel recently. An \u201cAscending Parallel Channel<\/a>\u201d refers to a pattern in technical analysis that\u2019s used for identifying uptrends and potential reversal points for any asset\u2019s price.<\/p>\n As the name already suggests, the pattern involves two parallel lines that make up the \u201cchannel\u201d within which the price action is mostly contained. The upper line is made by connecting higher highs, while the lower one strings together higher lows.<\/p>\nXRP Price<\/h2>\n
XRP Has Seen Rejection At Mid-line Of An Ascending Parallel Channel<\/h2>\n