Sleeping Giant Ripple (XRP) Is Setting Up for Next Leg Higher According to These Indicators

The price of XRP, the native token of the XRP Ledger, has notably underperformed compared to other top cryptocurrencies over the past month.

While coins like Ethereum (ETH) and Solana (SOL) have posted gains of 20% and 60% respectively in the last 30 days, XRP is up just 3.5% in the same time period.

XRP (blue) vs ETH (red) chart – source: CoinMarketCap

So what explains the sluggish price action in XRP relative to its peers? According to a recent technical analysis by altFINS, there are some bullish signals appearing that could foreshadow an impending breakout.

altFINS is eyeing a bullish breakout from the current bullish flag pattern, which could propel XRP to $0.92 – the peak from July’s runup. They note a stop loss at $0.53 in case the pattern fails to trigger.

Previously, a bullish breakout was seen from an ascending triangle formation, sending XRP over its 200-day moving average and signaling a resumption of the uptrend. Price spiked as high as $0.73 but became overbought, with RSI above 85. This led to some profit-taking and the creation of the current bull flag continuation pattern.

Source: altFINS – Start using it today

The bull flag is characterized by a short-term rectangular trading range between diagonal parallel lines, moving counter to the prevailing uptrend seen on longer timeframes. The flag is among the most reliable continuation patterns, generating a setup to enter an existing trend ready to resume. A breakout from the flag in the direction of the previous trend is used by traders to initiate trades. With bull flags, an increase in volume on the breakout is preferred but not required.

In terms of the current trend, altFINS sees neutral conditions short-term but an uptrend still intact on the medium and longer-term time horizons. Momentum readings are mixed, with the MACD line below the signal line (bearish) but the MACD histogram on the rise, hinting a swing back to positive momentum may be forthcoming.

In terms of support and resistance, $0.55, the former resistance level, marks the first support zone, followed by $0.45. Initial resistance is seen at $0.68, with the key test being that $0.92 level.

Despite recent consolidation, the altFINS analysis outlines the bullish continuation case for XRP. A break above $0.68 could confirm the bull flag and open the door for XRP to reach toward $0.92. Key support sits around $0.53.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

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