Despite a general downturn in the cryptocurrency market, XRP Ledger (XRP) has enjoyed a bullish run in recent days, aiming to maintain gains above the critical $0.60 mark.
The token has held steady above $0.617, showing a slight 3% increase over the past week. Notably, XRP has outperformed Bitcoin (BTC), with a 26% rise over the past month compared to Bitcoin’s 9% increase.
Adding to the speculation, the United States Securities and Exchange Commission (SEC) has scheduled another closed-door Sunshine Act meeting for August 1, 2024. This has fueled discussions within the crypto community about potential regulatory changes that could positively impact XRP’s performance.
On this same day, Ripple will unlock 1 billion XRP tokens worth over $627 million, as Finbold reported.
XRP’s road to $18
Based on its recent trajectory, crypto analyst Dark Defender has suggested that the token’s technical indicators point to extreme bullishness, signaling a potential breakout.
In his recent analysis, Dark Defender noted that XRP is in a consolidation phase in a three-month timeframe, indicating a potential breakout. The crucial support level, at around $0.39, which is the 23.60% Fibonacci retracement level, has been tested multiple times, highlighting its importance as a floor price.
XRP price analysis chart. Source: TradingView/DarkDefender
Conversely, the resistance level near $0.93, at the 100% Fibonacci retracement, acts as a formidable barrier. A breakthrough above this resistance could signal a substantial bullish trend.
Key support and resistance levels to watch
The $0.60 level has provided short-term support, maintaining XRP’s stability amid broader market volatility.
The ultimate support at $0.39 is vital for sustaining the long-term bullish outlook. On the resistance side, intermediate resistance at $0.66 could pose a minor hurdle, but the critical resistance level to watch is $0.93. A breakout above this level would likely initiate a strong bullish trend, attracting significant investor interest and momentum.
Investment implications
For bullish investors, a confirmed breakout above $0.93 presents a prime buying opportunity, with substantial upside potential at the projected targets of $1.88, $5.86, and ultimately $18.24 at Fibonacci retracement levels 161.80%, 261.80%, and 361.80%, respectively.
Conversely, a failure to hold the $0.39 support level could signal a bearish trend, necessitating caution and potential short-selling strategies. Monitoring these critical levels and the symmetrical triangle pattern will be essential for making well-informed trading decisions in the upcoming months.
XRP price analysis
At press time, XRP is changing hands at $0.62, with over a 4% increase in 24 hours.
XRP seven-day price chart. Source: Finbold
Analysts believe that a breakout from the current consolidation phase could catalyze a significant rally, with the potential to reach $18 by September. XRP’s recent performance, coupled with strong technical indicators and potential regulatory developments, suggests a highly bullish outlook.
Investors should closely monitor key support and resistance levels, particularly the $0.93 mark, as a breakout above this level could lead to substantial gains. The next few months could be pivotal for XRP, making it a key cryptocurrency to watch in the market.
