The Ripple XRP price has shown positive movement and potential for a breakout.
Although the price is still below the $0.55 resistance level, it has created a higher low on September 11 and broke out from a descending resistance trendline.
XRP Breaks Out After Long Lower Wick
On August 17, XRP formed a long lower wick, indicating buying pressure and a halt in the downward movement. This led to the breakout on September 11 and a high of $0.55 on September 29.
However, the subsequent rejection confirmed the $0.55 level as resistance.
Despite the rejection, XRP formed a bullish engulfing candlestick on October 2, indicating a potential reversal. However, the price still struggled to break above the $0.55 resistance level.
In recent news, Ripple CEO Brad Garlinghouse confirmed that the company will not acquire Fortress Trust following a security breach affecting some customers. Additionally, Ripple Labs has hired Lauren Belive as the new head of U.S. Public Policy and Government.
XRP Price Prediction: Will Breakout Above $0.55 Occur?
A closer look at the daily timeframe wave count and RSI suggests a bullish outlook for XRP’s price.
The Elliott Wave theory indicates that the current movement could be part of an A-B-C structure, with potential targets of $0.58 and $0.66.
The daily RSI is also supportive of a bullish trend, with readings above 50 and a positive momentum increase.
However, if XRP faces another rejection at the $0.55 level, it could signal a bearish trend and a potential decrease to the $0.41 support area.
Hot Take: XRP Shows Potential for Bullish Breakout
The recent price movement and technical indicators suggest that XRP has the potential for a bullish breakout above the $0.55 resistance level. The long lower wick on August 17 and the subsequent breakout from the descending resistance trendline indicate buying pressure and a reversal in the downward movement. Additionally, the wave count and RSI support a bullish outlook for XRP’s price. However, if XRP fails to break above $0.55, a bearish trend could emerge with a possible decrease to the $0.41 support area. Traders should monitor these key levels closely to make informed decisions about their XRP positions.
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