XRP price could validate a significant climb to $1 if the recovery that followed Grayscale Investments’ victory against the US Securities and Exchange Commission (SEC) in the appeals court on Tuesday carries on.
The cross-border money remittance token is up 2.8% to $0.53, with at least $1.4 billion in trading volume and $28 billion in market capitalization.
XRP has not flipped significantly bullish since the correction from the July court ruling rally to $0.93 but recently found support at $0.5. For the ongoing rebound to stay intact, bulls must be purposeful about pushing for a break above $0.55 – the immediate resistance and most importantly the descending trendline.
XRP Price Flashes Key Buy Signal
After sustaining a sell signal since mid-August, the Moving Average Convergence Divergence (MACD) indicator is aligning with the improving investor sentiment, with a buy signal.
The path with the least hurdles will likely stick to the upside, now that the MACD line in blue has flipped above the signal line in red. Traders would be watching the momentum indicator keenly, with movement to the mean line (0.00) and into the positive territory set to keep their long positions in XRP intact.
Providing the much-needed short-term support is the 200-day Exponential Moving Average (EMA) (purple) at $0.5253. It will mean a lot to the bulls if this support holds, allowing them to focus on the stubborn resistance at $0.55 and the descending trendline.
Traders are likely to take into consideration other hurdles likely to delay the run-up to $1, starting with the 100-day EMA (blue) at $0.5648 and the 50-day EMA (red) at 0.5816. A successful break and hold above these two key levels would pave the way for XRP to approach the crucial $0.65 and $0.8 resistance levels to $1.
XRP Price Eyes Triangle Pattern Breakout
An ascending triangle pattern on the four-hour chart could signal a 12% breakout to $0.6 if validated.
The ascending triangle is a bullish chart pattern that shows a continuation of the uptrend. As the chart shows, the triangle is formed by a horizontal resistance line and a rising support line that converge to create a triangle shape.
Traders look for a strong breakout above the resistance line at $0.55, which will signal that buyers have overcome the sellers and are ready to push the price higher.
The breakout that follows is often accompanied by an increase in volume, which confirms the bullish momentum. The height of the triangle estimates the potential profit target after the breakout. As for XRP price, this implies a 12% move from $0.55 to $0.6.
Based on the MACD indicator, XRP price is in bullish hands. However, bulls must ensure to keep the immediate support at $0.5284 intact to prevent profit-booking activities from wiping out the progress made since the sell-off to $0.42.
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