The Ripple (XRP) price has been showing signs of bullish momentum, with the price moving above the $0.550 horizontal resistance area and reaching a high of $0.586 on October 24. However, the key question is whether XRP will manage to close above this significant resistance level.
XRP Moves Above Critical Long-Term Level
The weekly technical analysis of XRP indicates an upward trend since the beginning of the year, with a well-established ascending support trendline. This trendline has been tested and confirmed multiple times, most recently in the first week of October, marked by a green icon.
Following this bounce, the price formed a bullish engulfing candlestick pattern, where the entire price decline from the previous period was reversed in the next period. Subsequently, the XRP price surged to $0.586, which suggests a successful reclamation of the $0.550 price level. However, a weekly close above this level has not yet been achieved.
The weekly Relative Strength Index (RSI), a momentum indicator used by traders to gauge overbought or oversold conditions, is currently in a state of uncertainty. When the RSI reading is above 50 and the trend is upward, it favors the bulls, indicating market strength. Conversely, an RSI reading below 50 suggests a disadvantage for the bulls. Currently, the RSI is on the rise but is hovering around the 50 level (marked by a green circle), failing to provide a clear confirmation of the trend’s direction.
What Do the Analysts Think?
Cryptocurrency analysts have a bullish outlook on the future of XRP. Thescalpingpro outlines a long-term cup and handle pattern with a neckline at $0.90. A breakout from this pattern could push XRP above the $1 threshold. LordCrypto and Predycto believe that the minor $0.50 horizontal area has now become support, and the price will bounce above it and continue to rise.
XRP Price Prediction: Will Breakout Be Confirmed?
On the daily timeframe chart, there are bullish indicators supporting the possibility of a weekly close above $0.550. The price has broken out from a descending resistance trendline, suggesting the end of the previous downtrend. It also reclaimed the minor resistance at $0.530, which had been a struggle since August. The daily RSI is rising and above 50, both signs of a bullish trend.
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If the upward momentum continues, XRP could increase by another 30% and reach the 0.5-0.618 Fibonacci retracement resistance level at $0.680-$0.740. However, a daily close below the minor support at $0.530 would invalidate the breakout, potentially leading to a 20% drop to the nearest support at $0.430.
As always, cryptocurrency markets are highly volatile, and investors should exercise caution and conduct their research before making trading decisions.
