Ripple’s Rollercoaster Ride: Will XRP See a Surge in Volatility?
Ripple’s XRP has been pretty steady since last August, just bobbing along without much ups and downs. But lately, things are looking even more uneventful. The big question on everyone’s mind is: will XRP start making some waves again soon, or is it going to be more of the same in the coming year?
XRP Hovers Above Key Support Level Peeking into the weekly charts, we see XRP has been on a slow but steady climb since May 2022, following an upward trend line. This trend got a nod of approval again in March 2023. Since then, XRP’s been hugging a steeper line of support.
Although XRP hit a peak in July, it’s been shy of reaching those heights again. In fact, it marked a lower high in November and took a bit of a dip. Right now, it’s hovering above a crucial horizontal support zone.
The Relative Strength Index (RSI), a tool traders use to gauge market momentum, suggests that the bulls might still have the upper hand. An RSI above 50 with an uptrend usually means good news for buyers. Currently, the RSI is over 50 and rising, but it’s a slow climb, hinting at a mild bullish trend.
XRP’s Future: A Time of Change? When we dive into the daily charts, it’s a bit of a head-scratcher. The price action has formed a symmetrical triangle since July, which is a bit of a coin toss – it could break out or break down.
One crypto trader, Dom, is betting on a breakout. He’s confident XRP will soar, pointing out its resilience in staying in the top 8 cryptocurrencies for nine years without hitting new highs in the last run.
But the RSI sitting at 50 throws a bit of uncertainty into the mix. It’s also worth mentioning that XRP whales have recently scooped up 360 million XRP tokens. This could be a game-changer.
The future of XRP’s price hinges on whether it breaks out of the triangle or dips below the $0.58 support. A breakout could potentially lead to a 30% hike, aiming for the next resistance at $0.82. Conversely, if it breaks down from the $0.58 level, it might fall back to the ascending support line at $0.55.
For BeInCrypto’s latest crypto market analysis, click here.
