XRP, the native token of the XRP Ledger, has faced criticism for its price stagnation compared to other cryptocurrencies. This has led to many within the crypto space such as crypto analyst Nick, labeling it a “dead” coin. However, recent price movements and technical indicators suggest a more nuanced outlook.
An analysis by TradingShot in a TradingView post highlights reasons for optimism regarding XRP. Since April 8th, 2023, XRP has consistently traded below its one-week 200-day moving average (1W MA200). However, it’s currently testing the support level of a long-term triangle pattern that emerged after the January 2018 all-time high.
This triangle pattern is similar to one formed after the December 2013 peak. The earlier triangle transitioned to an upward trend in March 2017, leading to a significant price increase. This historical parallel suggests a possibility of similar bullish behavior for XRP in the current market.
The one-week Relative Strength Index (RSI) is another crucial technical indicator to monitor. The RSI currently sits at 40, a level historically associated with favorable long-term buying opportunities. Low RSI levels often indicate an undervalued asset with the potential for a rebound.
Key Technical Levels for XRP
If XRP surpasses the 1W MA200 resistance level, it significantly increases the likelihood of a substantial price rise. Conversely, failing to overcome this hurdle could imply that XRP requires a significant positive development to attract investors.
XRP’s chart formation reveals a series of lower highs and higher lows, characteristic of a consolidating triangle pattern. These moving averages have acted as significant resistance points, and a breakout above them would be a strong bullish signal.
The trendline’s consistently higher lows have provided strong support, potentially signifying a foundation for future upward movement. The cyclical pattern of the RSI, with historical dips preceding substantial price rallies, adds to this bullish sentiment.
Short-Term Price Movement and the Legal Battle’s Influence
In the near term, XRP’s price continues to be impacted by bearish sentiment, trading below the critical $0.50 resistance level. At the time of writing, XRP is priced at $0.476, reflecting a slight 0.76% gain over the past 24 hours. The token exhibits signs of consolidation on the weekly chart, with a 3.07% correction.
A critical factor influencing XRP’s potential for a parabolic rally is the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC). A positive outcome for Ripple would serve as a significant bullish signal for XRP.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
While XRP has faced criticism for its price performance, a technical analysis reveals underlying potential for growth. The formation of a triangle pattern, coupled with the RSI reaching historically attractive levels, suggests a possible bullish breakout if XRP surpasses the 1W MA200 resistance.
The ongoing legal battle between Ripple and the SEC remains a significant factor to consider, with a positive resolution potentially serving as a major catalyst for XRP’s price.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
