Altcoin Market

XRP price eyes 30% upside after key resistance area breaks

More gains for XRP price appear likely due to a classic bullish continuation pattern alongside strong whale accumulation.

XRP (XRP) has risen by an impressive 60% in the first quarter of 2023, helped by rising speculation over Ripple’s potential legal win versus the U.S. Securities and Exchange Commission and broader bullish sentiment in the cryptocurrency market.

The XRP/USD pair now eyes more gains in the second quarter, primarily due to a classic bullish continuation pattern.

XRP price paints bull pennant

In late March, XRP broke above its multimonth ascending trendline resistance, averting a potential 35% correction. The rebound reached $0.58 on March 29, its highest level since May 2022.

Now, XRP has been consolidating sideways in what appears to be a bull pennant. This bullish continuation pattern forms when the price consolidates inside a symmetrical triangle after undergoing a strong rally.

A bull pennant resolves after the price breaks above its upper trendline while accompanying a rise in trading volumes. The pattern’s breakout target is obtained by adding the height of the previous uptrend (flagpole) to the breakout point.

In other words, a bullish target of $0.65 in Q2 for XRP price, up around 30% from current levels. 

XRP/USD daily price chart. Source: TradingView

Conversely, a decisive close below the pennant’s lower trendline risks invalidating the bullish setup and increases XRP’s probability of testing its 50-day exponential moving average (50-day EMA; the red wave) near $0.44 as its next downside target.

Whales scoop up XRP as dollar weakens

The year-to-date gains in XRP price coincide with a rise in whale accumulation, according to data tracked by Santiment.

Related: Why is XRP price up today?

For instance, the supply of XRP held by most whale address cohorts — be it 1,000–10,000 XRP or 100 million–1 billion XRP — has increased alongside its 40% gains in 2023 despite reports of some whales dumping XRP worth around $35 million.

XRP supply distribution among whales. Source: Santiment

Meanwhile, a weakening U.S. dollar has boosted risk-on assets across the board, including Bitcoin (BTC), whose correlation with XRP has largely remained in lockstep on a daily timeframe this year.

XRP/USD and BTC/USD daily correlation coefficient. Source: TradingView

Overall, the bullish scenario for XRP remains dependent on a Ripple win against the SEC in the near term, while a “sell the news” scenario should also not be ruled out. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

3 signs Axie Infinity price risks giving up its 135% gains in January

AXS price has formed a “gravestone” doji on its daily chart that coupled with its recent token unlock event hint at a potential bearish reversal ahead.

Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical and fundamental indicators.

Axie Infinity price prints “gravestone” doji

The AXS price formed a “gravestone doji” candlestick on Jan. 23, which technical analysts view as a bearish reversal pattern.

A gravestone doji appears when an asset’s opening, closing, and the lowest price comes to be nearly identical except for the highest price, as shown in the chart below. The long upper wick shows that the bears pared all of the gains printed by the candle during the given session.

AXS/USD daily price chart featuring gravestone doji. Source: TradingView

AXS seems to have been forming a similar candlestick pattern as of Jan. 23, with bears rejecting its advance above the $14 price level, triggering a 10%-plus intraday price drop.

In addition, the rejection came as the AXS/USD pair’s relative strength index (RSI) crossed into overbought territory, coinciding with its price testi the 200-day exponential moving average (200-day EMA; the blue wave in the chart above), which has served as resistance in January 2022 and April 2022.

These three factors have raised AXS’s possibility of undergoing a price correction in the coming weeks. The nearest downside target for AXS comes to be near its 50-day EMA (the red wave) at around $8, or a 40% drop by March.

Axie Infinity total supply expands 1.8%

From a fundamental perspective, the Axie Infinity price could fall in the coming weeks due to its latest supply unlock.

Related: Axie Infinity is toxic for crypto gaming

On Jan. 23, AXS’s circulating supply grew by 4.8 million, about 1.8% of its total supply of 270 million, after a scheduled vested token unlock. Theoretically, more supply could push prices lower if demand does not increase.

AXS price bullish hopes remain

On larger-timeframe charts, however, AXS appears to have formed a falling wedge, which analysts treat as a bullish reversal pattern.

AXS/USD three-day price chart featuring falling wedge pattern. Source: TradingView

AXS’s ongoing recovery run has resulted in its price breaking out of the wedge that’s been in place since May 2022.

In theory, such a move could mean that the price could rise by as much as the the wedge’s maximum height. In other words, the bullish target for AXS price is now around $22.50, up nearly 70% from current prices. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.