Could interesting patterns forming on the Shiba Inu (SHIB) and XRP chart be good news in the short term? Analysts say this possibility is strong.
SHIB prepares to break significant resistance
The Shiba Inu has come extremely close to an important threshold that will determine its fate in the near future. The price movements that the SHIB price will record within the horizontal channel below are extremely critical. The meme token could perform devastatingly from this formation, or it will revert to gradual consolidation in a few days or even weeks.
Shiba is currently consistently moving towards the upper end of the consolidation range formed in June. One of the longest consolidations is taking place for SHIB, which entered a downtrend in December-November. Traditionally, prolonged consolidations are signs of an impending trend reversal.
This attempt will be the fourth test of the consolidation range resistance level, which is keeping SHIB price away from rallying. Despite the limited price performance, the Shiba Inu managed to break above the $0.00001 price range, which is crucial for the development of the coin in the market.
From a technical standpoint, it has been performing well since the most recent market rally in November. Meanwhile, it left behind an important resistance level. Thus, it has entered the classical consolidation range that could help it enter a reversal rally. Trading volume is also in a steady recovery. Analyst Arman Shirinyan is watching closely how SHIB price will react to the resistance level of the above channel.
Another altcoin traded in an interesting formation: XRP
Along with SHIB, the XRP price has been continuing its downward trend since November 2021. The month of July provided an opportunity for recovery in Shiba and XRP, as in the rest of the market. Crypto exchange Bitrue draws attention to an important formation about XRP in its latest analysis. Stock market analysts comment on an XRP chart they shared today:
XRP has created a new Golden crossover on its 4-hour chart, which could be a good indicator that XRP may have bottomed. Currently, price action respects the 100EMA line as support after the end of July break of the previous price channel.
#BitrueTA $XRP $XRP just formed a fresh Golden crossover on its 4H-chart, it may be a good indicator that XRP might have reached the bottom. Currently the price movement is respecting 100EMA line as a support after July-end breakout of previous price channel. pic.twitter.com/PetfvVTDkT
— Bitrue (@BitrueOfficial) August 8, 2022
As seen on the four-hour chart, XRP’s MA of 50 broke above the moving average (MA) 200 in late July, confirming a “short-term” pattern known as the “golden crossover”.
Technical analysis points to a breakout target price of $0.5, which represents an increase of about 30% from the current price of XRP. According to Bitrue analysts:
The breakout target price is $0.5, which is somewhat optimistic given the many supply areas that need to be tested.
As you follow on Kriptokoin.com, XRP is currently trading at $0.3799. Some analysts and traders interpret the above-mentioned golden crossover pattern as a “definite upside turn”.
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