Ripple (XRP) ready to break Its resistance ?
While volatility rocks the cryptocurrency market, XRP stands out. Ripple’s cryptocurrency has maintained a relative stability in recent months, notably benefiting from obtaining a regulatory license in Dubai. Today, XRP is up nearly 7%, approaching a key technical resistance zone.
On the daily chart, it can be seen that XRP is moving within an uptrend channel, while forming a potential “head and shoulders” pattern. After testing the support around 2 dollars, the price has rebounded to 2.45 dollars and is now approaching a major resistance around 2.52 dollars, corresponding to the 50 and 100-day Moving Averages (MA).
A successful breakout above this level could initiate a promising bullish momentum, pushing XRP towards the 3 dollar resistance zone. Breaking this threshold could also lead to a test of the channel’s ascending resistance line, marking the beginning of a generally more favourable trend.
However, a failure to surpass this resistance could result in a pullback to the 2 dollar support zone before a possible resumption of the bullish trend.
The 200-day Moving Average at 1.63 dollars seems to be the last significant support for Ripple to maintain a long-term bullish momentum.
What are the short and medium-term prospects for XRP ?
If XRP successfully breaks through its key resistance around 2.54 dollars, the next major resistance level to watch will be the 3 dollar zone, followed by the upper resistance line of the ascending channel. A confirmed breakout could then solidify a new bullish phase, especially if Bitcoin and the overall crypto market maintain their positive momentum.
The RSI showed a bearish divergence since reaching its peak in January. However, a new bullish divergence is emerging with a lower XRP price but a rising RSI score.
Furthermore, the Mean Reversion Price indicates that the 1.83 dollars support can initiate a rebound. The next target is at 2.56 dollars to potentially reach 3.94 dollars upon breaking the 3 dollar mark.
