The Ripple XRP Price Breaks Resistance and Shows Bullish Signs
The Ripple XRP price has successfully closed above the $0.55 horizontal resistance level, marking a significant breakthrough. Additionally, XRP has broken out from a descending resistance trendline that has been in place for nearly 100 days. This raises the question of whether the price will continue to rise towards $1.
XRP Finally Closes Above Long-Term Resistance
According to the weekly technical analysis, XRP has been following an ascending support trendline since June. The price bounced off this trendline in March and reached its yearly high of $0.94 in July. Last week, XRP broke out from the $0.55 resistance area after falling below it in August, reclaiming this key level.
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The recent weekly close at $0.56 is the first time XRP has closed above this area since August.
The weekly Relative Strength Index (RSI) is currently showing a bullish reading. This indicator helps traders determine whether a market is overbought or oversold, providing insights into when to buy or sell an asset. With the RSI above 50 and trending upward, bulls have an advantage.
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What Do Analysts Say About the Increase?
Several cryptocurrency analysts have a bullish outlook on XRP’s future movement. IonicXBT predicts that everyone will start talking about XRP’s price pumps in a week’s time. Crypto Assets Guy offers a realistic price prediction of $2.50 for XRP on January 1, 2024. However, Crypto Poseidon’s bearish scenario is considered invalid since the XRP price closed above $0.55.
Furthermore, a whale recently transferred 50,000,000 XRP tokens from the Crypto.com exchange to a cold storage wallet, indicating potential supply shortages and a resulting price increase.
XRP Price Prediction: Can Price Reach $1?
The daily timeframe technical analysis supports the bullish sentiment seen in the weekly timeframe. Firstly, the price broke out from a descending resistance trendline that had been in place for nearly 100 days. Secondly, the daily RSI is above 50 and increasing, indicating a bullish trend. Additionally, there is a bullish divergence trendline preceding the entire upward movement.
If the increase continues, the next resistance area to watch is between $0.68-$0.74, which is 25% above the current price and represents a Fibonacci retracement level. Breaking above this level could lead to a 65% increase, pushing the price to a new yearly high of $0.95.
However, if the price closes below the minor support at $0.54, there is a possibility of a 28% drop, bringing XRP back to the long-term ascending support trendline at $0.41.
Read More: Everything You Need To Know About Ripple vs. SEC
Hot Take: XRP Shows Strength with Resistance Breakout and Bullish Momentum
The recent breakout above the $0.55 resistance level and the bullish indicators on both the weekly and daily timeframes suggest that XRP is gaining strength. Analysts have also expressed optimism about its future price movement. However, it’s important to keep an eye on key support levels and potential retracements as the price continues to rise. Overall, XRP’s performance indicates a positive outlook for investors and traders.
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