What to know:
- XRP breaks 7 months of resistance, putting $1.55 in focus as the next key test.
- A sustained move above $1.55 could strengthen the bullish outlook, while failure may trigger a pullback toward $1.
- Bollinger Bands and MACD indicators continue to show strong bullish momentum, although XRP appears overextended.
XRP price is showing renewed momentum after breaking out of a resistance area that had capped its upward movement for nearly 7 months. The breakout has brought the $1.55 level into focus, which could determine whether the current uptrend continues.
At the time of writing, XRP is trading at $1.48, with a 24-hour trading volume of $7.83 billion and a market capitalization of $93.13 billion. The token has declined 1.32% over the last 24 hours, suggesting that some short-term selling has emerged after its recent advance.
XRP Price Breakout Puts Further Gains in Focus
A well-known crypto analyst, Crypto Patel, pointed out on August 24 that XRP price managed to break through the resistance level after 7 months in his latest post related to the technical breakthrough of XRP.
XRP price was able to leave the accumulation zone, and a weekly candle brought about 70 percent growth. Thus, the level of $1.55 became a focus of the present setup.
If the price can sustain itself above $1.55, then it will add to the bullish thesis. If not, then the possibility of XRP consolidating or retracing back to the lower supports becomes likely.
Patel believes that investors should refrain from being aggressive on the upside at this point. Rather, a fall towards the $1 mark can give rise to a latest accumulation zone.
For the more distant future, Patel keeps an eye on the price range of $5 to $10, even though getting there would require XRP to have considerable demand from buyers while surmounting some resistance zones.
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XRP Price Pushes Higher as Momentum Builds
XRP has made a sharp rise above the upper Bollinger Band at $1.49946, while the middle band stands at $1.12589. Price currently trades at $1.48400, exhibiting strong upward movement after a breakout above the band. Such a situation indicates that XRP is overbought since it trades in a very extended area due to the recent rise.
Also, bullish momentum is observed on the MACD oscillator, where the MACD line is trading at 0.09700, higher than the signal line of 0.03738. The MACD histogram is currently standing at 0.05963, indicating an increasing divergence between the two lines. Such a scenario supports the ongoing upward trend in XRP.
What Happens Next for XRP?
The key resistance of $1.55 will be difficult to breach in the near term, and its clearance and breakout should be considered an indication of the start of a new uptrend.
The failure to break through the level will not automatically negate the breakout pattern for the market. Instead, a retrace towards the $1 level may allow the market to form yet another base.
The $5 to $10 levels are a much longer way off and would require Ripple to maintain its bullish trend for much longer and through various resistance levels. These levels should be seen as long-term possibilities and not short-term XRP price targets.
The recent run has put Ripple in the spotlight again, and the coming price action will determine if this breakout is just a short-term move or something bigger.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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