Ripple [XRP] has exhibited renewed vigor over the past week, defying broader crypto market challenges with a notable 5% rise. Trading at $0.599, XRP’s market capitalization currently stands at $33.64 billion, supported by a circulating supply of 56 billion tokens. As XRP inches closer to critical technical levels, analysts are closely watching for signs of a breakout that could echo the significant rally witnessed in 2017.
Potential Breakout After Years of Consolidation
Crypto analyst Javon Marks highlights that XRP is approaching a pivotal juncture, suggesting a possible breakout from a long-standing resistance pattern. XRP has been in consolidation for over 2,424 days, a period that began following its post-2017 bull run, which saw the asset soar to unprecedented heights.
Marks indicates that a modest 3-4% increase could potentially break this prolonged trend and signal the onset of another substantial rally. On August 6th, he predicted that the current technical setup resembles patterns observed in past bull markets, potentially setting the stage for a significant price surge. If XRP successfully breaks through, it could target a range between $15 and $18—a staggering 2,100% increase from current levels.
Technical Indicators Signal Bullish Momentum
Technical indicators are aligning in favor of a possible XRP breakout. The Relative Strength Index (RSI) stands at 56.40, suggesting a mild bullish trend with room for growth before hitting overbought territory. The 100 and 200 Exponential Moving Averages (EMAs) provide solid support between $0.58 and $0.56, which could sustain XRP’s upward momentum.
The Awesome Oscillator (AO) also shows positive momentum, with growing green bars indicating a strengthening bullish trend. Although still close to the zero line, an increase in these green bars could confirm the beginning of a more robust upward move. Traders are closely monitoring these indicators to determine if XRP will maintain its current trajectory.
Short Liquidations and Rising Open Interest
Recent price action has led to significant short liquidations, bolstering the case for a potential breakout. Data from Coinglass reveals that on August 23rd, $63.91K worth of short positions were liquidated, starkly contrasted by just $6.15K in long liquidations. This imbalance suggests that many traders who bet against XRP have been caught off guard by its recent rise, potentially fueling further upward pressure.
Also Read: Why Binance Is Outspending Ripple – $200M Investment In Crypto Compliance
The increase in Open Interest by 2.55%, reaching $698.52M, coupled with a dramatic 200.30% surge in options volume, underscores growing trading activity and heightened expectations for a bullish breakout. As XRP nears a crucial price level, all eyes are on the asset, anticipating whether it will capitalize on its current momentum and embark on a new rally.
With technical indicators, liquidation data, and increased trading volume pointing towards a potential breakout, XRP’s performance in the coming weeks will be closely scrutinized by investors and analysts alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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