Over the years, critics have labeled XRP a ‘dead cryptocurrency‘ due to its inability to mount significant price movement in line with peers such as Bitcoin (BTC) and Ethereum (ETH).
Notably, recent price movements and technical indicators suggest that the narrative of XRP’s decline might be premature. According to an analysis shared by TradingShot in a TradingView post on June 25, there are compelling reasons to believe in a potential bullish breakout for XRP.
The expert noted that XRP has been consistently trading below its one-week moving average (1W MA200) since April 8, 2023. Despite this, the cryptocurrency is currently testing the bottom of a long-term triangular structure that began forming after the January 2018 all-time high.
The current triangle pattern resembles a previous one that started following the December 2013 high. That earlier triangle turned upside in March 2017, leading to a significant price surge. This historical parallel is noteworthy as it suggests a potential for similar bullish behavior in the current market.
According to the analyst, one of the critical technical indicators to watch is the one-week Relative Strength Index (RSI), which is currently at 40. Historically, this level has been associated with long-term buying opportunities. When RSI levels are low, they often indicate that an asset is undervalued and could be poised for a rebound.
Key XRP levels to watch
The analysis indicated that if XRP breaks above the 1W MA200, it significantly increases the probability of initiating a parabolic rise toward the cycle’s top. Conversely, failure to break this resistance could mean that XRP will need a new narrative to attract investors.
“Technically, the next time it breaks above the 1W MA200, it has higher probabilities of initiating the parabolic rise towards this Cycle’s Top. If not, we’re afraid that the XRP army will need a need narrative to hang on to, as the long-term pattern would have failed them,” the expert projected.
Notably, XRP has been forming a series of lower highs and higher lows, indicating a consolidating triangle pattern. These moving averages have been crucial resistance levels, and a break above them would be highly bullish.
The trendline’s higher lows have also acted as strong support, providing a base for potential upward movement. The RSI shows a cyclical pattern, with historical dips leading to substantial price rallies.
XRP price analysis
In the short term, XRP continues to be weighed down by bearish sentiment, with the asset trading below the major $0.50 resistance. As of press time, XRP was trading at $0.475, dropping over 1% in the last 24 hours. The token generally shows signs of consolidation on the weekly chart, having corrected by 1.5%.
Overall, for XRP to realize a parabolic rally, one determinant factor will be the outcome of the legal battle between parent company Ripple and the Securities and Exchange Commission (SEC). A positive outcome would be a bullish signal for the token.