XRP Price Increases 130% — Moves Above $1 For the First Time Since 2021

Key Takeaways

• Ripple’s XRP moved above $1 for the first time since 2021.
• The price broke out from a long-term symmetrical triangle.
• Will this breakout take the XRP price to a new all-time high?

The XRP price has increased rapidly since Nov. 4. On Nov. 15, XRP reached a high of $1.26, the first time it had moved above $1 since 2021. The upward movement has become parabolic, causing a breakout from a long-term symmetrical triangle.

Let’s analyze the XRP price action in different time frames and determine where it will head next.

XRP Breaks Out

The daily time frame analysis shows the XRP price has increased by 130% since the Nov. 4 bottom. The upward movement caused a breakout from a descending resistance trend line and the $0.63 horizontal resistance area.

The XRP price reached a high of $1.26 on Nov. 16 before falling slightly. However, the price has regained its footing and is attempting to make another increase.

The increase is completely parabolic, following no discernible pattern.

Technical indicators are overbought. The Relative Strength Index (RSI) is at its highest level since 2020 while the Moving Average Convergence/Divergence is at its highest since 2021.

However, both are increasing and neither has generated any bearish divergence.

XRP news is also positive. Ripple CEO Brad Garlinghouse gave a positive outlook for the future of XRP, reminding that XRP  was the 2nd most valuable digital asset before the Securities and Exchange Commission (SEC) got involved. The potential firing of SEC Chairman Gary Gensler could bode well for the future trend.

Lion of Judah noted  that the Bitcoin (BTC) and Ethereum (ETH) increases followed the launch of USDT and USDC, respectively. He suggests that XRP could undergo a similar increase if RLUSD becomes more widely accepted.

How High Will XRP Go?

The weekly time frame XRP price chart shows that the price broke out from a symmetrical triangle existing since 2021. It had made numerous unsuccessful breakout attempts before last week.

According to the wave count, the breakout is part of wave C in an A-B-C structure. Giving waves A:C the same length leads to an XRP target of $2.38.

Similarly to the daily time frame, the weekly RSI and MACD are not showing any weakness even though they are overbought.

The short-term six-hour chart shows that XRP has increased alongside a parabolic ascending support trend line (white) since Nov. 4. The short-term count suggests that the price is in wave four of its five-wave increase.

So, XRP could correct in the short-term, completing a symmetrical triangle before breaking out toward the next long-term resistance at $1.70.

If the XRP price breaks down from the parabolic trend line, it could fall to $0.92 to complete wave four. This currently seems unlikely.

Bullish Trend Ahead

The XRP price broke out from a symmetrical triangle, increasing above $1 on Nov. 16. The upward movement is likely to continue in the long-term, though a short-term drop is possible if the parabolic ascending support trend line breaks.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

See more

[email protected]