Recently, XRP has shown strong upward momentum and has successfully broken through the key resistance level of $0.4663 per share. This rise has fueled optimism among investors and market analysts, sparking speculation as to whether the next target could be $0.5724 per share.
This article will take a closer look at the current XRP price action, exploring technical indicators to assess whether this rally is sustainable and has the potential to set new highs, or if it could be facing the possibility of a short-term correction.
As of this writing, XRP has a market cap of over $28 billion, a 24-hour trading volume of over $2 billion, and is trading 11.55% higher at its current price of around $0.5088. The market cap and trading volume have increased by 11.60% and 73.65% respectively from the previous day.
XRP breaks above $0.466: Analysis surges
On the 4-hour chart, the price of XRP is showing a positive uptrend and has successfully broken above the 100-day Simple Moving Average (SMA) and the critical resistance level of $0.4663 per share. Furthermore, it can be observed that the crypto-asset is moving towards the important mark of $0.5724 per share.
On the 4-hour chart, the relative strength index (RSI) pattern shows that the price of XRP may continue its bullish trend towards the $0.5724 resistance level per share. The signal line of the RSI continues to remain stable above the 50% level and is currently in the overbought zone, which shows that market sentiment may continue to support price increases.
Observing on the daily chart, the crypto asset has been on a bullish run ever since XRP failed to close below the $0.4088 support level per share. Currently, the market is struggling to break above the 100-day Simple Moving Average (SMA) to move further towards the $0.5724 resistance level per share.
Finally, an analytical examination of the 1-day RSI formation suggests that XRP can sustain its bullish rebound towards the $0.4233 resistance level as the indicator’s signal line has risen above 50% and is heading towards the overbought zone.
Potential risks and resistance levels ahead
If XRP can sustain its current upward momentum and successfully break out of the $0.5724 per share resistance and close above it, it could continue to rise to challenge the $0.6697 per share resistance. A successful breakout of this level could see the price rise further towards the $0.7342 per share resistance and possibly higher levels.
Conversely, if XRP falls back to $0.5724 per share, it could retest the support level on the way down towards $0.3389 per share. If this support level is breached, the price could fall further to challenge the support level at $0.3483 per share and possibly even drop to lower levels.
