XRP Price Approaches Long-Term Resistance, Is a Breakout Happening?
The XRP price has broken out above a short-term pattern. This could catalyze a break above long-term resistance and a strong rally thereafter.
The XRP price has been on a downward trend since reaching its yearly high at $0.93 on July 13. This movement pushed the price below the $0.55 zone, which was expected to provide support once crossed. Subsequently, the price fell to the next significant support level at $0.45, marking a 100% retracement from the July 13 increase.
Although the $0.55 zone was established in September 2022, the price moving decisively through the $0.55 zone on two recent occasions (blue ellipse) has shown that this is no longer a critical level to monitor in the future.
The daily RSI indicator has created an uptrend structure, surpassing the 50 levels, showing that the bulls are back. Currently, XRP is trading just below the $0.55 zone after a significant bullish candlestick formation yesterday.
While both signals favor the bulls, these technical signs are not yet strong enough to confirm a breakout above $0.55 on the daily timeframe. If the breakout is successful, it could rise to the next resistance level at $0.65.
The 4-hour chart shows that XRP has broken above a symmetrical triangle, confirming it as support yesterday (green arrow). This indicates that the bulls have taken control of the short-term price action, potentially leading to a new uptrend.
A movement equal to the height of the pattern could take the price to $0.65, aligning with the aforementioned resistance. This would also facilitate a breakout above the long-term resistance at $0.55.
The most likely scenario suggests that XRP will break above the $0.55 resistance and rise to the next resistance level at $0.65. However, this outlook could be invalidated if the price breaks below the recent low of $0.507.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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