XRP On The Move After 48 Days of Sideways Movement — Can it Make a Breakout?
XRP spikes 10% on the positive news, and is still up. Will it start a major uptrend?
Key Takeaways
- XRP spiked by 7% today, starting to interact with local resistance.
- Consolidation of 48 days could be a bullish sign.
- Chart analysis predicts it can reach $1 in January.
The journey of XRP over the past 48 days has been particularly intriguing, showing fluctuations that have kept the market on its toes. Beginning from October 11, when XRP was trading at a modest $0.47, the digital currency experienced a noteworthy surge, reaching a peak of $0.73 by November 7.
However, this ascent was short, declining to $0.57 on November 22. Despite a recovery effort on December 9, which saw XRP climb to $0.70, it failed to sustain this momentum, falling back to $0.60 by December 18.
This movement pattern has led many to speculate about the future trajectory of XRP. A fresh attempt to revive its previous upward trend is underway, with the price spiking by nearly 7% today, bringing it to a current trading value of $0.64.
This recent development has sparked discussions among investors and market analysts alike, raising the question: Can XRP successfully break out of this sideways range and resume its upward climb? The answer lies in market dynamics, the broader context of the cryptocurrency market, and investor sentiment.
XRP Price Analysis
The price of Ripple has been trying to establish a larger uptrend since the start of 2023. It reached its yearly high of nearly $1, in July after a partial victory against SEC. But, after that, it went down to its ascending support level, falling by 52%.
The last runup occurred on October 11 but ended at a lower high, indicating that the sellers are still in control. However, the following sideways range could be a form of consolidation, as the symmetrical triangle has been formed.
As the XRP approaches this triangle’s resistance on a 7% spike, the possibility of a breakout to the upside is high.
XRP Price Prediction
Zooming into the hourly chart and examining the wave structure from October 11, we see that it first made a five-wave impulse to the upside, followed by an ABC retracement to 0.618 Fibonacci level.
This price movement is typical for a five-wave impulse of the higher degree and could mean that XRP is now poised for another and a more powerful runup as wave 3 starts to develop. But first, we need to see a breakout above the triangle’s resistance to validate this possibility.
If a breakout occurs, the price could increase almost immediately and parabolically and embark on a journey to $1. This target will occur at the 1.618 Fibonacci extension, which is a typical point for wave 3. But it wouldn’t be the end of this larger uptrend as another high for wave 5 would happen.
Depending on the strength of the momentum, this target can vary. But, as it now stands, we could see the price of XRP going above $1 in January.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
