Ripple’s native token, XRP, has been making headlines recently as it experiences significant price action, fueled by favorable developments in its ongoing legal battle and increased market activity. After a remarkable 13.5% surge in the past 24 hours, XRP is now eyeing a potential 75% rally. With a current trading price of $0.68 and a massive increase in trading volume, many market analysts believe XRP could soon reach $1.36. But can it maintain this momentum, and what are the key factors that might drive this move?
XRP’s recent price action has highlighted a critical resistance level around $0.75. Historically, this price point has acted as a strong point of selling pressure, often leading to pullbacks. However, with XRP recently reaching this level after March 2024, market sentiment appears to have shifted, giving investors and traders hope that the altcoin could break through this resistance and continue its upward momentum.
According to CoinPedia’s technical analysis, if XRP can break above $0.76 and close a daily candle above this level, the potential for a strong rally exists. A successful breakout above this resistance would set the stage for a potential 75% price increase, which could take XRP to as high as $1.36.
However, there are still obstacles in the way. The next resistance level after $0.76 is around $0.95, and this could pose a challenge. If XRP struggles to break this level, it could face a temporary pullback before any further upward movement.
The current bullish trend is also supported by the 200 Exponential Moving Average (EMA), which is often used to gauge longer-term trends. XRP is trading above this EMA on both the daily and weekly charts, a positive indicator suggesting that the current uptrend could have room to continue.
Another key metric to watch is the Relative Strength Index (RSI), which measures the strength and speed of price movements. Currently, XRP’s RSI is in oversold territory, which typically indicates that there could be additional bullish momentum in the coming days. The RSI’s position suggests that XRP is primed for further upward movement, as the coin may still have room to rise before reaching overbought conditions.
However, traders should remain cautious, as a sharp move could lead to an oversold condition if the rally is too aggressive. Therefore, a careful approach is advised, especially given the challenges that lie ahead near $0.95.
Beyond technical analysis, XRP’s on-chain metrics are providing additional bullish signals. One of the most significant indicators is the increase in open interest (OI), which represents the total value of outstanding futures contracts. According to Coinglass, XRP’s OI has surged by 22% in the past 24 hours, signaling that more traders are betting on XRP’s potential breakout. This rise in open interest, especially when paired with the ongoing positive momentum, suggests strong trader participation, which often signals that the rally is supported by substantial market interest.
Moreover, over the last four hours, the OI has increased by another 7.25%, indicating that traders are continuing to take positions as the price of XRP approaches critical breakout levels.
At present, key liquidation levels are set at $0.657 (on the lower end) and $0.736 (on the upper side). These levels are crucial because a significant number of over-leveraged positions exist around these points. According to Coinglass data, a price move in either direction could trigger liquidations worth millions. Specifically, $47.56 million in open positions are at risk of liquidation if XRP drops below $0.657, while $31.72 million worth of positions could be liquidated if the price rises above $0.736. This dynamic could add fuel to XRP’s price movement, depending on which way the market swings.
As of press time, XRP is trading at $0.68, marking a significant 13.5% increase in the last 24 hours. This price surge is accompanied by a 170% rise in trading volume, which suggests that traders are actively engaging with XRP as it approaches key resistance levels. Increased trading volume typically signals strong interest and can help support a breakout, particularly when combined with favorable technical indicators and bullish sentiment.
With market participants showing heightened interest in XRP, driven by positive sentiment surrounding its ongoing legal case, the momentum could be just the beginning of a larger price rally.
As XRP continues its upward trajectory, the next few price levels will be critical to monitor:
Ripple’s XRP has captured the attention of traders and investors due to its impressive recent price action and strong technical indicators. With a potential 75% price rally targeting $1.36, XRP is positioned to see significant gains if it can clear the immediate resistance levels and sustain momentum. On-chain metrics, including the rise in open interest and increasing trader participation, further support the bullish case for XRP.
Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9
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