XRP is at the center of a significant rally, as the cryptocurrency recently surged by 31% in just one week and a staggering 271% in November alone. This impressive momentum has pushed XRP into the spotlight, with analysts identifying crucial price levels and potential breakout targets.

As XRP’s price crosses pivotal thresholds, market commentators are closely watching its interaction with a major supply zone. This zone, which stretches from $1.75 to $1.95, is a critical level for the cryptocurrency, marking an area of historical resistance that XRP has struggled to surpass in the past.

XRP Retests a Seven-Year Supply Zone

XRP’s latest surge began on November 27, following a sharp 13% drop to $1.2821 on November 26. However, the altcoin has quickly regained its lost ground, climbing 36% since that low point. Recently, XRP surpassed the $1.75 mark and is now testing the upper boundary of this long-established supply zone, hovering near the $1.90 level.

Stock market analyst Blake has highlighted the significance of this zone, pointing out that XRP’s price action has reached a critical juncture. This $1.75 to $1.95 range has historically been a strong resistance area, particularly during past bull runs in 2018 and 2021. As XRP tests this key supply zone, the price action here could be pivotal for determining its next move.

Blake believes that if XRP successfully closes this week above the $1.95 level, it could trigger a substantial rally, with the next target around $2.50. However, he also cautioned that XRP’s weekly Relative Strength Index (RSI) has spiked to 88, indicating an overbought condition. This could suggest that XRP may face some short-term resistance, and long-term holders might want to consider taking partial profits or adjusting their stop-loss positions.

Parallels to XRP’s 2017 Rally

Adding to the optimism, cryptocurrency analyst Chad Steingraber has drawn parallels between XRP’s current rally and its explosive price action during the 2017 bull run. According to Steingraber, XRP’s recent 271% surge in November closely mirrors its 284% rally in March 2017, which marked the beginning of a much larger price run.

Steingraber’s analysis indicates that XRP could follow a similar trajectory to 2017, where the price saw a 143% increase the month after its March rally, followed by a massive 374% surge in May 2017. After consolidating for several months, XRP ultimately reached its all-time high of $3.3 in December 2017. If history repeats itself, XRP could be poised for another period of significant growth, especially if it breaches the $2 threshold.

The $2 level is seen as a critical resistance point for XRP, with Steingraber emphasizing that breaking past this level could ignite a new wave of bullish momentum, possibly leading to a rapid price increase similar to what was seen in the latter part of 2017.

The Path Forward for XRP

As of the latest data, XRP is trading at $1.89, up 21% in the past 24 hours. The cryptocurrency’s recent rally has generated renewed interest from investors, and the ongoing test of the $1.75 to $1.95 supply zone could set the stage for its next major move. If XRP manages to break through this critical level, analysts are targeting $2.50 as the next potential resistance point.

However, with XRP’s RSI suggesting an overbought condition, there is also a risk of short-term consolidation or pullback before any potential breakout. As always, investors should remain cautious and consider the broader market conditions when making decisions.

Conclusion: Is XRP Ready for a Major Breakout?

XRP’s recent price action has been nothing short of impressive, with a 31% surge in the past week and a staggering 271% increase in November alone. As the cryptocurrency tests a significant supply zone between $1.75 and $1.95, analysts are watching closely for signs of a breakout. If XRP manages to close above $1.95, it could pave the way for a rally toward $2.50 and potentially higher.

However, the overbought RSI signals caution for investors, and a short-term pullback is possible. If XRP successfully breaches the $2 mark, it could trigger a wave of bullish momentum, potentially setting the stage for a repeat of its 2017 bull run. As always, investors should monitor key price levels and consider the risks involved before making any major decisions.