XRP, the digital asset linked to Ripple, is drawing attention as traders anticipate a significant price movement. Recent technical analysis suggests that XRP could be on the brink of a notable breakout, potentially triggering a strong upward rally. The focus is on two key indicators: a rising support trendline and a long-term relative strength index (RSI) pattern.
In a recent post by Amonyx, the analyst pointed to a critical setup in the weekly chart. XRP/USD shows a pattern of higher lows since 2014, forming a strong ascending trendline. This trendline has acted as a reliable support level on three occasions, as highlighted in the chart. Traders interpret this as a bullish signal, suggesting that XRP is building momentum for a substantial price surge. Historically, similar patterns have led to sharp upward movements, as indicated by the highlighted area during the 2017 bull run.
In another post by analyst JD, he focused on a long-term perspective, analyzing XRP’s market cap chart. XRP’s market cap on a monthly timeframe shows a series of rejections at a descending trendline. This trendline has suppressed XRP’s market cap growth since 2018. However, the chart also shows a rising support level, creating a tightening triangle pattern. The RSI, a momentum indicator, is approaching the apex of a similar descending trendline. Once this trendline is breached, analysts expect XRP to enter a parabolic rally.
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The RSI trendline has historically acted as a resistance level, causing rejections each time XRP approached it. The ongoing attempt to break above this trendline is seen as a crucial moment for XRP. If successful, it could confirm the start of a new bullish phase. Traders are advised to monitor this development closely, as a breakout could lead to rapid price appreciation.
Both analysts agree on the potential for a significant move in XRP’s price, but they also underscore the importance of strategic profit-taking to navigate the volatile market conditions that typically follow such rallies.
