XRP Bull Rally Intensify, Will Price Retest the Double Top Resistance?
XRP Price Analysis: The XRP price has been volatile in the last seven days after starting on a bearish note earlier in the week. During the week, the price swayed between a weekly high and low of $0.5485 and $0.508, respectively. This price fluctuation has been greatly influenced by regulatory developments and ETF speculations.
In the last 24 hours, bulls have had the upper hand after establishing support at the intra-day low of $0.5317. The bullish rally, as a result, picked up momentum, soaring price to an intra-day high of $0.5423 before facing stiff resistance.
Source: CoinMarketCap
This development could increase XRP’s liquidity and market exposure, potentially stabilizing and boosting its price if approved around 2025.
XRP/USD Technical Analysis
On the 24-hour price chart, the trajectory initially displays a descending triangle pattern, where the price action forms lower highs while maintaining a consistent support level of around $0.430. This formation is typically a bearish pattern that often leads to a breakdown. At -0.08, the Chaikin Money Flow (CMF) indicates slight selling pressure. This negative value suggests that money is flowing out of XRP, which could precede further price declines.
With an RSI of 55.48, XRP is neither overbought nor oversold. However, the RSI’s position above the 50 mark signals moderate bullish momentum, which could support a price increase if other factors align.
Source: TradingView
However, the resilience of the support level suggests that buyers are still active at these lower price points, potentially setting the stage for a reversal if upward momentum can be regained. The neckline of this pattern, around $0.530, has been retested and currently serves as a significant support level. If XRP can sustain above this level, it might indicate strengthening buyer momentum, possibly driving the price towards higher resistance levels.
If XRP manages to break above the immediate resistance at $0.543 and sustain this level, it could retest the double top resistance around $0.595 to $0.600. However, failure to break above the resistance could see XRP retesting the support at $0.530.
A drop below this level would indicate a potential decline towards $0.500. If the bearish sentiment persists and the price breaks below $0.500, the next target would be the major support at $0.430, aligning with the descending triangle pattern’s bearish implications.
Regulatory Developments and Market Catalysts
Recent regulatory developments and market activities further influence XRP’s market dynamics. Coinbase’s relisting of XRP in New York, following the U.S. House of Representatives passing the FIT21 bill, has provided a clearer regulatory landscape, potentially increasing investor confidence.
Additionally, there has been notable activity among XRP ‘whales’, with significant accumulations signalling strong support for the cryptocurrency’s price stability and potential growth. Moreover, technical indicators currently indicate slight selling pressure.
Concurrently, the recent buzz around the introduction of spot XRP ETFs in the United States has injected optimism into the market. Analysts, including those from Standard Chartered, have identified XRP as a strong candidate for ETFs following the approval of spot Ether ETFs.
Read Also: Whale Who Made Massive Profit With ETH ETF Approval Now Buying These 5 Altcoins
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