XRP, a cryptocurrency that has been dubbed as ‘dead’ by critics due to its lack of price movement compared to Bitcoin and Ethereum, is showing signs of a potential bullish breakout according to recent analysis. TradingShot, a cryptocurrency analyst, shared insights on TradingView indicating that XRP may be on the verge of a significant price surge.
The analysis highlighted that XRP has been trading below its one-week moving average since April 2023 but is currently testing the bottom of a long-term triangular structure that resembles a historical pattern from December 2013. This pattern eventually led to a major price increase in March 2017, suggesting a possibility of a similar bullish behavior in the current market.
One of the key indicators to watch is the one-week Relative Strength Index (RSI), which currently stands at 40. Historically, this level has signaled long-term buying opportunities, indicating that XRP may be undervalued and poised for a rebound. Breaking above the 1W MA200 resistance level could trigger a parabolic rise, while a failure to do so may necessitate a new narrative to attract investors.
XRP has been forming a consolidating triangle pattern, with moving averages serving as crucial resistance levels and trendline’s higher lows acting as strong support. The RSI has shown a cyclical pattern, with dips leading to significant price rallies. In the short term, XRP is facing bearish sentiment, trading below the $0.50 resistance level at $0.475 as of press time.
The outcome of the legal battle between Ripple, XRP’s parent company, and the SEC will likely be a determining factor in XRP’s price movement. A positive resolution could serve as a bullish catalyst for the token. It is important to note that investing in cryptocurrencies is speculative and involves risks. This analysis should not be considered as investment advice.
