Analysis
Traders can long here if they have missed out on XRP’s current rally
Posted:
| Last updated: January 30th, 2024
XRP resumed its upcycle after finding a resting ground at $0.93 and faced no hiccups while attempting to rise above a resistance zone of $1.07-$1.09. Its daily gain of 13% also sat comfortably above all of its competitors in the top 10, the closest to which was Cardano with a daily rise of 8%. With bulls in cruise control, prices seemed to be heading in only one direction moving forward. At the time of writing, XRP traded at $1.18 and held the sixth spot in crypto rankings.
XRP 4-hour Chart
Source: XRP/USD, TradingView
XRP’s rally required stabilization at $0.93 and $1.00 before continuing on its next leg forward and although the same was expected moving forward, there seemed to be little to no resistance till $1.20-$1.25. This meant that XRP’s current rally might not have peaked just yet despite a near 30% surge from $0.93 to its press time level.
Once the resistance zone is snapped, some sideways movement can be expected before the next target at 20th May swing high of $1.30. In case of a decline, $1.095 support would likely contain any short-term risks.
Reasoning
XRP’s indicators lined up a favorable long-term outcome, but there was some short-term downside. For instance, RSI traded in the overbought region – a development that usually serves as a sell-signal. The index also formed bearish a head and shoulders pattern from where a decline is normally witnessed.
A bearish double top was also spotted on Awesome Oscillator, although another green candle would invalidate the bearish setup. On the other hand, DMI painted a more wider picture and suggested that the market was strengthening.
XRP Weekly Chart
Source: XRP/USD, TradingView
At this point, it’s also important to mention XRP ‘s cup and handle pattern which presented massive upside on the weekly chart. A successful breakout would see the digital asset rise above its May highs and register additional milestones over the longer run.
Conclusion
XRP’s market conditions were increasingly bullish and prices were expected to continue their northbound journey, both in the short and long run. However, the alt was expected to face some resistance between $1.25-$1.30 and traders could place long bets within this region to capitalize on the projected upside.
