XRP – Ripple and PNC Partnership Catalyst

XRP price analysis

XRP (XRP/USD) is trading above its year price averages. The monthly average crossed the quarterly average. This is a validation of an upward price rebound.

A positive momentum came in as the Pittsburgh-based bank, PNC announced that it’s going to use Ripple xCurrent payment technology product to facilitate instant payments. This announcement has helped the cryptocurrency to rise in value.

XRP has formed a double bottom support pattern around its year low of 0.246 and a bull flag strong breakout pattern between 0.31 and 0.34.

• Support levels:

Week: 0.310          Strong: 0.280                   Key: 0.246

• Resistance levels:

Week: 0.340          Strong: 0.358                   Key: 0.375

• Average prices:

Month: 0.309                    Quarter: 0.286                  Year: 0.303

What is a Head and Shoulders Pattern?

A head and shoulders pattern is used in technical analysis to predict a change in an asset price trend.

The pattern formation consists of a lower price peak that looks like a left shoulder, a higher price peak that resembles a head formation, a right shoulder that is another lower price peak and a neckline that is drawn by analysts. Direction change occurs when the neckline price level breaks out followed by high trading volume.

The inverted head and shoulders pattern present the mirror picture. It consists of a higher price trough that looks like an inverted left shoulder, a lower price trough that resembles an inverted head formation, a right shoulder that is another higher price trough and a neckline that is drawn by analysts. It indicates a possible price bottom followed by the asset appreciation in value.

*Any views and opinions presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading.

This article was written by Yaron Mazor, a senior analyst at DX.Exchange