XRP price rise delay is resulting in investors eyeing a price surge that could break a five-month resistance level, signaling a significant bullish momentum.
The outcome of this move could determine the token’s near-term trajectory, influencing market sentiment.
XRP Has a Bullish Setup Amidst Market Volatility
The micro outlook for XRP’s price remains positive. The token has managed to avoid a Death Cross, a technical pattern that usually signals a bearish trend. Instead, the Golden Cross that appeared at the end of July continues to suggest potential upward momentum.
This Golden Cross occurs when the 50-day exponential moving average (EMA) crosses above the 200-day EMA, signaling a bullish trend. This pattern has boosted investor confidence, helping keep the XRP price above the important $0.50 level.
Additionally, XRP’s funding rate has shown consistent positivity over the past month, reflecting a bullish sentiment among investors. A positive funding rate typically indicates that traders are willing to pay a premium to hold long positions, betting on the price to rise.
With long contracts dominating the market, traders are expecting a price increase and are also actively positioning themselves to benefit from it. This dynamic creates a favorable environment for potential upward price movements, making the possibility of a breakout more likely if market conditions remain supportive.
Read more: XRP ETF Explained: What It Is and How It Works
This optimism is crucial as XRP hovers above the 23.6% Fibonacci Retracement line, a key level that has provided support in recent weeks.
The Crucial XRP Price Barrier
XRP price’s next major challenge lies in breaking the $0.64 resistance level, which aligns with the 50% Fibonacci Retracement line. This barrier has proven formidable, keeping the token from advancing since mid-March.
However, XRP would need to breach $0.60 to get there successfully. Flipping this level into support would also turn the 38.2% Fib line into a strong support zone, potentially paving the way for further gains.
If XRP price can achieve a 12% price increase, it could decisively overcome this resistance. This would mark a significant breakout that could lead to a sustained rally beyond the five-month-old resistance of $0.64.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Nevertheless, failing to break through $0.64 could result in another period of consolidation. XRP would still keep above the critical support of the 23.6% Fib line, but this would invalidate the current bullish thesis, leaving investors waiting for recovery and profits.
Disclaimer
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Source: https://beincrypto.com/xrp-price-eyes-breaking-barrier/