Date: Sat, Jan 04, 2025, 06:00 AM GMT
The cryptocurrency market is showing signs of optimism as Bitcoin's (BTC) dominance declines to under 57%. BTC itself has experienced a strong recovery, climbing from its December 31 low of $92,000 to approach $98,000 today.
This momentum has positively impacted altcoins, with XRP standing out after rebounding strongly from its December correction. $XRP is now trading at $2.45, marking weekly and monthly gains in green, and approaching a critical resistance level.
Source: Coinmarketcap
Key Resistance Ahead
XRP’s recent price movement has been influenced by a symmetrical triangle pattern on its daily chart. In December, XRP faced rejection at the $2.90 resistance level—the upper boundary of this pattern—leading to a retracement toward the triangle's lower support around $2.00.
XRP 1D Chart/ Coinsprobe
The altcoin, however, managed to stage a solid rebound from the $2.00 support zone. Currently, it trades near of $2.46, nearing the triangle’s upper boundary resistance at $2.51. A decisive move here could set the stage for further bullish momentum.
Indicators Support Momentum
MACD (Moving Average Convergence Divergence): The MACD line is on the verge of crossing above the signal line, suggesting a potential shift to bullish momentum. The histogram has turned green, further supporting the case for upward movement.
RSI (Relative Strength Index): Currently at 63, the RSI reflects moderate bullish strength but is still below overbought territory. This indicates room for additional upside without immediate risk of a correction.
Is a Breakout Looming?
If XRP can break above the symmetrical triangle’s upper resistance near $2.51 and confirm the breakout with a retest, it may trigger a robust rally. The next significant target would be the $2.90 resistance zone. A successful breakout here could open the door for XRP to test new highs, provided market conditions remain supportive.
On the downside, failure to breach the $2.51 resistance could lead to another pullback. In such a scenario, XRP might revisit the $2.35 support level before making another attempt at a breakout.
Conclusion: XRP's price action is at a critical juncture, with the potential to break out of its symmetrical triangle pattern. Traders should monitor the $2.51 resistance level closely, as a confirmed breakout could signify the start of a new bullish trend.
Get more updates at: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
