XRP is currently testing a critical resistance level at $2.60, with analysts watching closely to see if a breakout above $2.77 could ignite a sustained bullish trend. This technical analysis suggests that higher lows in both price action and the Relative Strength Index (RSI) indicate increasing buying pressure, pointing to a potential rally toward $5.85 in the long term.
Resistance levels to monitor include $2.60, $2.85, and $5.85, while the support level is positioned at $2.33, in case of any short-term pullbacks.
Bullish Momentum Building
Crypto analyst Dark Defender notes that XRP is currently consolidating at $2.60, a key level that could dictate the asset’s short-term trajectory. A successful breakout above $2.77 could pave the way for further price appreciation. With higher lows being established, market sentiment is growing increasingly bullish.
RSI trends also confirm the bullish outlook, with the indicator reflecting growing demand for XRP. If the cryptocurrency maintains its position above $2.60, the next resistance targets are $2.85 and $5.85. However, should the price fail to break through these levels, $2.33 remains a crucial support level.
Long-Term Projections and Potential Pullbacks
In addition, analyst Egrag Crypto forecasts that XRP could soar as high as $67 if it breaks through higher resistance levels, with a monthly close above $3 signaling a strong upward trend. However, Egrag cautioned that short-term pullbacks could occur, potentially testing $0.90 before a major price surge.
Cup and Handle Pattern Suggests Bullish Continuation
Technical analysis from Thom Sieloff has identified a cup and handle pattern forming on the daily chart. This pattern is historically seen as a bullish continuation signal, typically leading to an upward move of 20-30%. XRP has been consolidating between $2.40 and $2.70, completing the handle portion of the pattern. A breakout above $2.68 could set the stage for a potential target of $3.36 before facing additional resistance.
Altcoin Rally on the Horizon?
If XRP successfully breaks through its resistance levels, the breakout could spark an altcoin rally. With growing institutional interest in cryptocurrencies and positive technical formations in the market, XRP’s price action will be pivotal in determining whether this rally materializes.
Despite the positive technical outlook, regulatory concerns surrounding the SEC’s oversight on digital assets could still influence investor sentiment. However, XRP’s resilience in the face of past regulatory challenges may keep the coin on track for future growth.
Ethereum’s Role in Altcoin Sentiment
Market analysts also warn that the broader altcoin season might be at risk if Ethereum fails to maintain its crucial $2,600 support level. A drop below $2,425 could negatively affect the broader altcoin market, potentially delaying the anticipated rally.
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