XRP, the native token of the Ripple network, has recently shown promising signs of a potential bullish breakout. The cryptocurrency has climbed above its 2-year moving average, a significant technical indicator that has historically preceded explosive upward moves.
In both 2017 and 2021, XRP experienced substantial gains after breaking above this key level, and analysts believe that the current cycle could yield similar results, with a potential 5x increase in price, according to Mikybull Crypto.
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Technical Analysis
According to a recent technical analysis by altFINS, XRP remains in an uptrend despite facing rejection at the $0.75 resistance level. The pullback from this level presents an attractive swing entry opportunity for buyers near the $0.57 support area, which coincides with the 200-day moving average.
If XRP manages to hold above this support level, the analysis suggests a potential 25% upside, with the price targeting a return to $0.75. Should the $0.75 resistance be broken, XRP could possibly rally further to $0.92. To manage risk, a stop-loss level has been set at $0.47.
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Show more +Trend and Momentum
The trend analysis reveals that XRP is currently neutral on a medium-term basis, while maintaining an uptrend on both short-term and long-term timeframes. This mixed trend outlook suggests that the token is poised for a potential breakout, which could lead to significant price appreciation.
The momentum indicators for XRP are currently mixed. The MACD (Moving Average Convergence Divergence) line is below the MACD signal line, indicating a bearish momentum. However, the RSI (Relative Strength Index) is hovering around 50, suggesting a neutral momentum.
Source: altFINS – Start using it today
Interestingly, the MACD histogram bars are rising, which could indicate that the momentum is nearing another upswing. This development further supports the bullish outlook for XRP in the near future.
Key Levels to Watch
Traders and investors seeking to leverage XRP’s potential upside must closely monitor the key support and resistance levels. The nearest support zone is $0.55, which previously served as a resistance level. If this level is breached, the next support level can be found at $0.45.
On the upside, $0.75 and $0.92 represent the nearest resistance zones. A breakout above these levels could signal a continuation of the uptrend and potentially lead to substantial gains for XRP holders.
Historical Precedent
The current setup for XRP is particularly noteworthy due to its similarity to the patterns observed in previous bull cycles. In both 2017 and 2021, XRP experienced significant price appreciation after breaking above its 2-year moving average.
If history were to repeat itself, XRP could be on the verge of another explosive move, with the potential to yield a 5x return for investors. While past performance does not guarantee future results, the historical precedent adds credence to the bullish outlook for XRP.
As XRP continues to show signs of strength, breaking above key technical levels and displaying promising momentum indicators, the stage appears to be set for a potential bull run. With the token currently trading above its 2-year moving average and the market exhibiting patterns similar to previous bull cycles, XRP could be poised for a significant upside move.
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