Ripple (XRP) has struggled to achieve substantial growth, with its price increasing by just 17% over the past year. Numerous challenges, including ongoing legal battles and market volatility, have limited the altcoin’s performance.
However, if historical performance holds any predictive value, the token could be on the verge of a major breakout.
Ripple Leaves Bitcoin Playing Second Fiddle
An evaluation of the XRP/USD pair on the weekly chart dated back to March 2021 showed that cryptocurrency trades in a crucial demand area. During that time, XRP’s price changed hands between $0.60 and $0.61.
By late April 2021, XRP surged to $1.55, marking a gain of over 100% in less than two months. A similar rally took place in July of that year when the altcoin jumped from $0.60 to $1.28.
The current market setup suggests XRP might be mirroring this pattern. If broader conditions turn bullish, XRP could see another significant breakout. Supporting this outlook, the Relative Strength Index (RSI) during those past rallies reached high levels, confirming the strength of the bullish trend at the time.
Read more: Getting Started With XRP Wallets
From the chart below, the RSI seems to be rising, and if the upswing continues, XRP has a higher chance of validating the outlook.
Another chart supporting the movement is the XRP/BTC weekly chart. From the chart below, Bitcoin (BTC) has been outperforming XRP since July 2023.
The last time the altcoin trampled over the number one cryptocurrency was during the period when XRP was confirmed not to be a security. But as of this writing, Bitcoin is no longer performing better; instead, XRP has been dominating since last month.
In the same vein, pseudonymous analyst Crypto Michael told his 46,600 followers that the cryptocurrency’s bullish breakout is very close. Referring to his analysis published in July, Michael highlighted that XRP could break above a seven-year bullish pennant.
“The sacred XRP mega pump is imminent,” the analysts noted.
XRP Price Prediction: Return to the Local High Imminent
Currently, XRP trades comfortably above the 20-day (blue) and 50-day (yellow) Exponential Moving Averages (EMAs) on its daily chart. The EMA is a technical indicator used to gauge market trends and predict future price movements. When a cryptocurrency’s price remains above the EMA, it indicates a bullish trend, whereas prices below the EMA suggest a bearish outlook.
In XRP’s case, the price holding above both the 20 and 50 EMAs signals a bullish trend. Additionally, the golden cross—a bullish pattern that occurs when a shorter EMA crosses above a longer one — further supports this positive sentiment.
If this pattern continues, XRP could target $0.65 in the short term. However, ongoing developments in Ripple’s lawsuit with the SEC still pose a risk to this outlook.
Read more: Everything You Need To Know About Ripple vs SEC
If the regulator appeals the ruling and wins, XRP’s bullish momentum could be disrupted, making it unlikely for the token to surpass $1 during this market cycle. In that scenario, XRP’s value could drop to around $0.48,
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/ripple-xrp-price-poised-for-surge/
2024-08-25 19:30:00
