In the world of cryptocurrencies, the XRP price has been experiencing a steady correction phase for the past two months. However, recent market data has shown early signs of an upcoming recovery, thanks to a breakout from the falling channel pattern. On May 25th, the daily chart displayed a decisive breakout from the pattern’s resistance trendline, with an above-average volume action. This high momentum breakout suggests that buyers are confident that they will be able to drive the price higher and reclaim lost ground.
As we look more closely at the key points highlighting this development, it is worth noting that a pullback to the breached trendline provides a retest buy opportunity for potential buyers. Additionally, a bullish crossover between the 20-and 50-day EMA is expected to attract more buying orders for XRP. The reported intraday trading volume in XRP is $401.5 million, indicating a 45% loss.
At the time of writing, XRP’s price is trading at the $0.47 mark with an intraday gain of $0.25. However, the daily chart has displayed rejection candles at the current price, signifying early profit booking from short-term traders. This selling pressure might result in a minor pullback in the XRP price, pushing it to the recently breached trendline. If the coin’s price indicates stability at this level, buyers will find a suitable launchpad to initiate a fresh recovery rally.
The post-breakout rally is expected to drive XRP’s price up by 25%, reaching the $0.582 peak. Such a bullish breakout from the channel pattern signifies the end of the correction phase for the XRP price. In theory, pattern completion offers each swing high as a potential target, making the likely prices $0.485, $0.547, and $0.58, provided sustained buying occurs.
Furthermore, XRP’s price is on the verge of surpassing the downtrend neckline of this pattern, indicating additional confirmation for trend reversal. There is also visible growth in the daily RSI slope, reflecting the increasing bullish momentum in the XRP price.
The bullish signals for XRP’s price provide an optimistic outlook; however, it is crucial to conduct thorough market research before investing in cryptocurrencies, as the market can change rapidly. The author and the publication do not hold any responsibility for personal financial loss that might occur as a result of market movements.
Source: Coingape
