XRP Poised for a Potential 50% Surge as It Recovers Crucial Price Zone
The XRP price has reclaimed a crucial price zone and confirmed it as support over the past 3 weeks. It is expected to rise further in the upcoming period.
Key Price Zone
The XRP price has been falling since being rejected by long-term resistance at $0.91 during the week of July 10 to 16 (red arrow). This action caused the price to break below the crucial price zone at $0.56, which has served as support and resistance since July 2021.
However, the XRP price has held the key level of the uptrend since the beginning of 2023 at $0.47. This means that the trend is still upward, and any declines are considered corrections.
Indeed, the XRP price recovered afterward and broke above the important zone at $0.56 during the week of October 30 to November 5 with a large bullish candle. It then confirmed this zone as support over the past 3 weeks (green arrow).
This indicates that the earlier setback was just a deviation (green ellipse) and is often followed by strong upward movements.
The weekly RSI is above 50 and sloping upward, supporting further upside potential.
If the uptrend continues, the crucial resistance zone to watch is $0.91, which is 46.06% higher than the current price.
The daily chart shows that the XRP price bounced from the Fibonacci retracement support zone of 0.5-0.618 ($0.57-0.60) of the most recent rally (blue arrows).
According to the Fibonacci retracement theory, after a significant price change in one direction, it is expected to retrace back a portion of the previous price level before continuing the initial trend. Bouncing from the Fibonacci retracement support zone of 0.5-0.618 indicates that the previous decline was just a correction, and the uptrend will likely resume soon.
The daily RSI supports this possibility as it regains the level of 50 and slopes upward.
Therefore, the XRP price could rise to the nearest horizontal resistance zone at $0.73 in the coming days.
The most likely scenario suggests that the XRP price will continue to rise in the near future. The immediate target is $0.73, with further potential to reach $0.91.
This bullish outlook would be invalidated if the price breaks and closes below the Fibonacci retracement support zone of 0.5-0.618 at $0.57-0.60 on the daily timeframe.
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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