The price of XRP is up 7% over the past 24 hours to around $0.62, marking a welcome change in fortune for the cryptocurrency after months in the doldrums. This surge comes as part of a broader positive momentum sweeping across crypto markets, with Bitcoin trading above $62k after consolidating in the mid-$50k range for weeks.
Looking closer at the XRP/USDT chart provides some clues behind this uptick. For over two months, XRP had been trading sideways in a descending channel. But a few days ago, the price broke out of this multi-month consolidation pattern.
Typically when the price breaks out of a extended channel like this, it suggests an end to the previous trend and volatility tends to increase as the coin enters a period of discovery. This seems to be playing out for XRP this week as it tests higher levels. Based on the chart, $0.75 seems as the next level XRP price could end up in the next few days or weeks.
Some encouraging signs can be seen on the daily technical indicators as well. The 200-day moving average, an important level of support, currently sits at $0.56. Holding above this level is constructive for the next move higher.
Additionally, the DEMA 9 has crossed above the price to $0.62, confirming the short-term momentum is to the upside. The RSI has also climbed into the middle range at 60, suggesting there is still room left in this move before the coin becomes overbought.
Noted trader BrettFogle highlighted these factors in an analysis on TradingView: “XRP may finally be ready to run. As likely profit taking in BTC ensues, money looks to be flowing into previously dormant projects like ADA and now XRP. The 21 day EMA crossing above the 50 day EMA, which usually gives an approximate average pump of 45%. Also our indicators are turning Green, showing a new uptrend may be starting, and XRP is breaking out of the wedge pattern it’s been forming for many months. Near term upside target is $.075.”
So, traders may be rotating profits into previously underperforming altcoins like XRP and Cardano (ADA). The bullish crossover of the 21-day exponential moving average (EMA) above the 50-day EMA confirms this change in short-term momentum, with studies showing such a setup tends to precede an average 45% price gain. Additionally, XRP breaking out of the multi-month falling wedge pattern it had been confided within on the chart opens the door for a meaningful trend reversal.
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Show more +To wrap up, the confluence of the breakout from the long descending channel, bullish moving averages, and inflows into alternative coins appears to be fueling XRP’s upside price action over the past days and weeks. A continued hold above key support levels could see this move extend toward BrettFogle’s initial target of $0.075 in the near term.
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