XRP Bull Rally Intensifies, Will Price Retest Resistance?
XRP Price Analysis: The XRP price has followed a volatile course in the last seven days after starting with a downward trend at the beginning of the week. During the week, the price fluctuated between $0.5485 and $0.508, which were the weekly high and low respectively. This price volatility has been greatly influenced by regulatory developments and ETF speculation.
In the last 24 hours, the bulls gained the upper hand after forming support at the intraday low $0.5317. As a result, the bullish rally gained momentum and the price rose to an intraday high of $0.5423 before encountering stiff resistance.
Source: CoinMarketCap
This development could increase XRP’s liquidity and market risk and potentially stabilize and increase its price if approved around 2025.
XRP/USD Technical Analysis
On the 24-hour price chart, the trajectory initially displays a descending triangle pattern; Here, price action is forming lower highs while also maintaining a consistent support level near $0.430. This formation is generally a bearish formation. Chaikin Money flow (CMF) at -0.08 indicates slight selling pressure. This negative value indicates that money is flowing out of XRP, which could lead to further price declines.
With RSI at 55.48, XRP is neither overbought nor oversold. However, the RSI’s position above the 50 mark indicates a moderate bullish momentum, which could support the price increase if other factors align.
Source: TradingView
However, the resilience of the support level suggests that buyers are still active at these lower price points, potentially setting the stage for a reversal if upward momentum is regained. The neckline of this formation near $0.530 has been retested and is now serving as an important support level. If XRP can stay above this level, this could indicate that buyer momentum is strengthening and the price is possibly drifting towards higher resistance levels.
If XRP manages to climb above the immediate resistance at $0.543 and maintain this level, it could retest the double-top resistance between $0.595 and $0.600. However, failure to break above the resistance could cause XRP to retest the support at $0.530.
A decline below this level would indicate a potential decline towards $0.500. If the downtrend continues and the price falls below $0.500, the next target will be the main support at $0.430, in line with the bearish descending triangle formation.
Regulatory Developments and Market Catalysts
Recent regulatory developments and market activities are further impacting the market dynamics of XRP. Coinbase‘s relisting of XRP in New York following the US House of Representatives’ passage of the FIT21 bill has provided a clearer regulatory environment and potentially increased investor confidence.
Additionally, there has been significant activity among XRP ‘whales’, with significant accumulations signaling strong support for the cryptocurrency’s price stability and potential growth. Additionally, technical indicators are currently pointing to slight selling pressure.
Simultaneously, recent rumors regarding the launch of spot XRP ETFs in the United States have added optimism to the market. Analysts including Standard Chartered have identified XRP as a strong candidate for ETFs following the approval of spot Ether ETFs.
Also read: Whale Making Big Gains With ETH ETF Approval Now Buys These 5 Altcoins
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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