For the past month and a half, XRP’s price has been moving within a symmetrical triangle pattern, but it has repeatedly failed to breach a key resistance barrier.
Now, as the token is showing signs of breaking out of this consolidation pattern, traders are growing optimistic about the possibility of a significant rally. The breakout could pave the way for XRP to reach higher price levels, potentially marking a new chapter of bullish momentum for the altcoin.
XRP Enthusiasts Vote for a Rally
XRP traders are increasingly bullish about a potential rally, as indicated by the positive funding rate. The current streak of positive funding rates is the longest XRP has experienced in over seven weeks. A positive funding rate typically signals that long contracts are dominating short contracts, reflecting strong market sentiment in favor of rising prices.
This trend shows that traders are betting on XRP to rise, with many optimistic about the token’s chances of moving upward. If this bullish sentiment continues, it could fuel a sustained rally. This would further strengthen XRP’s price action as more investors enter the market.
Read more: XRP ETF Explained: What It Is and How It Works
The broader momentum of XRP also shows positive signs. The Chaikin Money Flow (CMF) indicator, which tracks the flow of capital into and out of an asset, has noted a sharp uptick. This uptick signals that investors are pouring money into XRP, which reflects confidence in the asset’s potential for growth.
A rising CMF typically indicates increasing buying pressure, which can be a precursor to higher price levels. With investors heavily investing in XRP, the market may continue to see upward momentum in the short term. This would support the potential breakout and subsequent rally.
XRP Price Prediction: Key Barrier Awaits
XRP is currently testing the upper trend line of the symmetrical triangle pattern as support, suggesting a breakout may be on the horizon. If the breakout occurs, XRP could see a 29% rise, pushing the price toward $0.76.
However, for this bullish outcome to be confirmed, XRP must first flip the $0.64 resistance level into a support floor. This move would solidify the upward trajectory and create the foundation for further gains.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
If the breakout attempt fails, as it has in the past, XRP could face a potential drawdown of $0.56. Given this level has served as a strong support floor in the past, the altcoin could consolidate above it. This would ultimately invalidate the bullish thesis if the breakout does not materialize.
Disclaimer
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