Analysts support the fact that XRP Price, in its pattern, may break to $0.550 and may print a rally. It has begun returning some bullish momentum.
XRP Price Starts Recovery
XRP price created a base close to $0.5020 to initiate a recovery wave just like Bitcoin and Ethereum. The price initiated a decent increase above the $0.5220 and $0.5250 resistance levels.
Price was able to break above the 50% Fib retracement level of the decline from the $0.5625 swing high to the $0.5020 swing low, which was the target set by the bulls. The price even broke over $0.540 prior to encountering resistance.
The price is now trading above $0.5320 and the 100 hourly SMA. There is also a forming connecting bullish trend line with support at $0.5325 on the hourly chart of the XRP/USD pair.
On the upside, the price might meet resistance near the $0.5420 level. It is followed by the first major resistance close to the $0.5480 level or the 76.4%. The bearish wave from the $0.5625 swing high to the $0.5020 swing low has reached its fib retracement level. The next significant resistance level might be $0.5550.
A close above the resistance near $0.5550 might probably set the price for a test of the resistance of $0.5680. The next major resistance is near the $0.5720 level. Any more upsides might take it toward the $0.5880 resistance or even toward $0.600 in the near term.
Technical Analysis Suggests Upward Trend
Recent technical analysis has shown that XRP is tracing an inverted head-and-shoulders chart pattern, which typically precedes a price explosion. Consolidation is happening presently above a pivotal area of support, and a breakout above the resistance line at $0.550 should trigger a strong rally.
The major determinants of the move into a bullish sphere include:
- Consolidation Above Support: XRP continues to consolidate above key support, which could be indicative of accumulation.
- Positive RSI: When the RSI breaks out in the higher direction, it depicts that buying pressure is on the higher side.
- Ascending Triangle Pattern: Some analysts say XRP forms an ascending triangle, which is normally considered a bullish pattern.
Ripple’s Legal Win Boosts Confidence
The recent legal win of Ripple against the U.S. Securities and Exchange Commission also means positive sentiment for XRP. It came with regulatory clarity of the status of XRP price and removed a major overhang that was seen as uncertainty.
This might spur investors’ confidence in XRP and attract new buyers to the market. As such, the possibility of a price explosion has heightened.
Another Decline?
If XRP fails to clear the $0.5420 resistance zone, it could start another decline. Initial support on the downside is near the $0.5320 level and the trend line. The next major support is $0.5220.
If there is a downside break and a close below the $0.5220 level, the price might continue lower toward the $0.5080 support in the near term. The next major support sits at $0.5020.
Possible Catalysts for Further Price Increase
A number of factors could serve as catalysts for further price appreciation in XRP:
Increased institutional adoption: If more financial institutions and institutional investors start using the digital asset XRP for cross-border payments, demand might increase, and the price might increase.
Positive regulatory developments: Favorable changes to the regulatory environment in large markets could also favorably affect XRP’s price.
Announcements of new partnerships, possibly with large financial institutions or technology firms, may increase the popularity of XRP and hence its demand among investors.
Conclusion
Even if the forecast for XRP Price could seem optimistic, it is crucial to consider any potential risks and uncertainties. The price of cryptocurrencies is anticipated to change greatly in this extremely unpredictable market. Anything might affect its pricing, from macroeconomic factors and broader market trends to regulatory changes.
