Decoupling from the broader market sentiment of uncertainty, the XRP price has shown sustained recovery for nearly a month, surging nearly 30% from its last swing low of $0.415 to reach the current price of $0.53. With the bullish momentum continuing, buyers are eager to challenge the multi-month resistance of $0.55. The question remains: will they break it this time?
A recent analysis of the XRP price daily chart reveals that the XRP price is likely to face intense supply pressure at the $0.55 mark. The reclaimed daily EMAs (20, 50, 100, and 200) all reflect a bullish trend. However, the intraday trading volume in XRP currently stands at $726.5 million, indicating a 10.5% loss. This data was sourced from Tradingview.
During the recent recovery, the XRP price completed a falling wedge pattern, which carried the last two-month correction phase in the coin. This bullish setup accelerates the underlying buying momentum in an asset and assists buyers in carrying a steady rally. Under the influence of this pattern, the XRP price is potentially gearing up to challenge the multiple months’ resistance. Buyers have so far failed to sustain above this level with a daily candle closing, despite several attempts since the last year.
Thus, the $0.55 level stands as a crucial supply zone that could either invalidate the buyers’ recovery attempt or pave the way for a massive rally, should it be breached. A daily closing above $0.55 could signal an early sign of trend reversal and result in the coin price surging nearly 46% higher to reach $0.8.
For over a year, the $0.55 level has remained a daunting supply zone for XRP holders, with the price facing multiple reversals from this resistance. To even consider a sustained rally in XRP price, buyers need to pierce the $0.55 barrier. This breakout will intensify the buying pressure in the market and push the price to a potential target of $0.6, followed by $0.7 and $0.8.
The current positive market indicators include:
– Super trend: The indicator’s film is projecting a green color, indicating a positive change in the daily trend.
– Vortex indicator: A considerable gap between the VI+ (blue) and VI- (orange) slope reflects aggressive buying sentiment among traders.
The blockchain future for XRP remains uncertain, with both potential growth and challenges ahead. However, enthusiasts should conduct thorough market research and acknowledge the risks before investing in cryptocurrencies. The responsibility for personal financial loss ultimately resides with the individual investor.
Source: Coingape
