Cardano, Ripple Edge Closer To Breaking Out
2022.08.11 11:19
Cardano and XRP are soaring as the market sentiment improves.
Key Takeaways
- The market has reacted positively to July’s U.S. Consumer Price Index report.
- ADA and XRP have risen by more than 4% over the past hours.
- Further buying pressure could help these tokens enter a new uptrend.
The global cryptocurrency market capitalization increased by roughly $64 billion after July’s U.S. Consumer Price Index print came in at 8.5%, 20 basis points lower than economists’ expectations. The sudden spike in bullish momentum has helped Cardano and Ripple gain strength for potential breakouts.
Cardano and Ripple Turn Bullish
Cardano and Ripple have surged by more than 4% over the past four hours as the market has shown signs of bullish momentum.
ADA rebounded from a critical support area following the news that U.S. inflation had cooled to 8.5% in July. The uptick in price action has pushed Cardano’s native token closer to the X-axis of an ascending triangle developed on its 12-hour chart. Overcoming this supply barrier could help ADA enter a new uptrend.
The Y-axis of the technical formation forecasts a 27% breakout. ADA would have to print a 12-hour candlestick close above $0.55 to confirm the optimistic outlook and target $0.70. It is worth noting it must continue to trade above $0.50 for the bullish thesis to be validated.
ADA/USD 12-Hour Chart.
XRP has also seen an upswing in the last few hours, reaching an intraday high of $0.38 at press time. The token appears to have bounced off the upper trendline of a parallel channel it broke out in late July. The recent price action indicates that Ripple’s native token is bound for further gains.
A spike in buying pressure around the current price levels could help XRP revisit $0.41. If it slices through this resistance level, it could surge toward $0.45.
XRP/USD 12-Hour Chart.
XRP must continue to trade above $0.37 to maintain a bullish outlook. If it loses this vital support level, it could experience a selloff, potentially leading to a decline to $0.34.
