Ripple’s native token, XRP, has been a constant source of debate in the crypto community, often overshadowed by its legal battles with the SEC. However, recent price action suggests a bullish resurgence, with analysts eyeing a potential 45% surge in the coming days.
World of Charts, a well-known crypto analyst, identified a critical technical development – a breakout from a falling wedge pattern on a 12-hour chart. This pattern, characterized by converging downward trendlines, typically precedes a bullish reversal. Notably, the breakout was accompanied by strong trading volume, signifying significant investor interest and buying pressure.
“XRP Breaking Falling Wedge With Strong Volume Expecting Move Towards $0.75 In Coming Days In Case Of Successful Breakout,” tweeted World of Charts, highlighting the potential for a substantial price increase towards $0.75. The recent price action reinforces this optimism, with XRP decisively breaching the resistance level on increased volume.
The falling wedge formation, developed over several months, compressed XRP’s price between descending resistance and horizontal support. This technical squeeze created pent-up buying pressure that’s now being released with the breakout. If this bullish momentum sustains, the token could experience significant gains as it ascends toward the projected target of $0.75.
Key Support Zone Holds for XRP
While the overall sentiment is positive, a closer look at the XRP/USDT daily chart reveals a key support zone. Since mid-April, the price has been oscillating between $0.5 and $0.55. Reclaiming this level is crucial for the bulls, potentially triggering a rally towards the 200-day moving average around $0.55.
Currently trading at $0.486, marking a 3.70% decline in the last 24 hours and a 7.26% decline in the last week. A failure to hold $0.5 could lead to a decline towards $0.4. A breach of this support level would be a bearish sign, potentially triggering a steeper price drop.
While the short-term outlook for XRP appears promising, the cryptocurrency’s long-term trajectory remains heavily influenced by the ongoing SEC lawsuit. A favorable resolution could be a major catalyst for XRP, potentially propelling it toward new heights.
