Key Resistances to Watch in XRP’s Recovery Trend
XRP, the sixth-largest cryptocurrency, has experienced a bullish momentum in recent days. The price rebounded from the support level at $0.528 and surged by 8% over the last four days. This recovery sentiment was intensified by Bitcoin’s price hitting a two-year high of $57,000, which had a positive impact on the altcoin market.
As XRP approaches a key resistance trendline, it is important for coin holders to be aware of potential overhead supply that may limit further upward movement.
Slow Yet Steady Rally in XRP Price
In February, the XRP price witnessed a gradual rally supported by an upward trendline. This dynamic support helped the altcoin grow from $0.485 to $0.575, representing an 18.5% increase.
During this recent upswing in XRP’s price, there has been an increase in its OI-Weighted Funding Rate, indicating traders’ willingness to maintain long positions in XRP and suggesting a bullish outlook for further price appreciation.
Currently trading at $0.577, XRP is approaching a downsloping resistance trendline that has been active for the past seven months. This resistance may hinder sustainable growth and lead to a sideways trend if overhead supply persists.
Can XRP Break Through to Reach $0.75 Soon?
If the broader outlook remains positive, there is potential for XRP buyers to break through the overhead trendline. A successful breakout above this barrier could accelerate buying pressure and push the altcoin up by 25%, reaching the psychological level of $0.75 and potentially even $0.93.
- Bollinger Band: The rising price challenging the upper boundary of the Bollinger band indicator suggests that buyers are currently dominating the market.
- Moving Average Convergence Divergence (MACD): A bullish crossover between the MACD (blue) and signal (orange) indicates that the asset is returning to a recovery trend.
Hot Take: XRP’s Future Outlook
The recent rebound in XRP’s price and its potential to break through key resistances indicate a positive future outlook for the altcoin. However, it is important to closely monitor the market and be aware of potential overhead supply that may limit further upward movement.
If XRP successfully breaks through the resistance trendline, it could experience significant growth and reach $0.75 or even higher. This presents an opportunity for investors to capitalize on the altcoin’s momentum.
Keep an eye on indicators such as the Bollinger Band and MACD for further insights into XRP’s price movement. Remember to stay informed and make informed investment decisions based on your own analysis and risk tolerance.
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