XRP Price Prediction: Falling Wedge Breakout Targets $0.75
As the excitement around spot Bitcoin exchange-traded funds (ETFs) grows, there are concerns about whether cryptocurrencies will experience a dump or a pump. XRP is currently down 0.3% in the last 24 hours, trading at $0.56, while Ethereum has slid by 0.6% to $2,271.
Bitcoin, on the other hand, has seen a 4% increase, reaching $46,758. This bullish trend, combined with the potential approval of the ETF by the SEC, may keep bears at bay and encourage investors to explore not only BTC but also altcoins like XRP.
Falling Wedge Breakout
XRP has been forming a falling wedge pattern since early November after reaching $0.75. Although there was a commendable uptrend from mid-October, profit-taking and market sentiment in November and December led to a decline.
The price briefly rebounded on Monday and surpassed the 200-day Exponential Moving Average (EMA) at $0.58 before retracing to test the wedge support at $0.55.
To confirm a sustainable trend reversal towards $1, traders will be looking for a buy signal from the Moving Average Convergence Divergence (MACD) indicator, indicated by the blue MACD line crossing above the red signal line.
Supporting Bullish Theory
If XRP price lifts above the 200-day EMA, it will further support the bullish theory. This increase in tailwind would shift the path upwards and allow bulls to push for a falling wedge pattern breakout.
A falling wedge is a bullish pattern that indicates consolidation after a significant upward movement. The pattern is confirmed when the asset breaks above the upper trendline with increased trading volume.
Traders are looking to enter above the breakout level, aiming for a 20% increase in XRP price. This would push the price beyond $0.75, establish a key support level, and potentially trigger a bullish continuation towards $1.
Cautionary Outlook
However, there is still a risk of XRP dropping to test lower support areas, such as $0.5 and $0.45, as indicated by the recently formed death cross pattern with the 20-day EMA moving below the 50-day EMA. Traders should approach with caution to avoid sudden bull traps, especially during spot BTC ETF approval week.
Hot Take: XRP Price Poised for Breakout
XRP’s falling wedge pattern suggests a potential breakout towards $0.75 and beyond. With increasing interest in spot Bitcoin ETFs and positive market sentiment for cryptocurrencies, XRP may experience a bullish continuation. However, traders should remain cautious due to the possibility of lower support tests and the influence of spot BTC ETF approval week.
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