- XRP surged 6% this week, reaching $2.70 as it tests crucial resistance between $2.65 and $2.80, a key level to watch.
- A breakout above $2.80 could drive XRP to $3.00, but a daily close above this level is needed to confirm a bullish trend.
- Whale activity remains strong, with 150 million XRP purchased recently, signaling confidence that the token is undervalued and poised to surge.
XRP continues to trade and has experienced a 6% increase in the past day to push the price beyond $2.70. This comes as the token hit a critical resistance level of between $2.65 and $2.80 which have been bear areas of multiple rejections in the past. Therefore, this has formed as one of the most important levels to watch in the coming days.
The most important level that has been recognized is $2.80 as breaking through it will lead to a large increase. A breakout in this case would most probably drive the value of XRP towards $3.00 as this is a psychological marker that most investors aim at. However, it is essential for getting a bullish trend confirmation and the breakout is not valid until XRP prices close above the $2.80 level on the daily chart.
Source: TradingView
Potential Cup and Handle Pattern
XRP, also seems optimistic for the formation of a cup and handle pattern which is generally indicative of future upward trend. If this major pattern repeats itself, technical price predictions of the Ripple will reach its previous high of $3.37. Yet, this potential pattern remains rather speculative here and one needs to see the price go above $2.80 for one to explore more confirmation on this pattern.
There are some positive signals as yet, but the price of token is still uncertain and might be stopped at the $2.80 level. If this occurs, XRP will retrace and the first level of support is $2.50 while the other supports are between $2.25 and $2.30. A rejection from $2.80 would possibly confine XRP in a consolidation zone where key support levels will be tested.
Bearish Signals to Watch
Besides price action, there is the short-term bullish divergence at this time. On the weekly chart, XRP depicted lower lows from the current week but the Relative Strength Index (RSI) depicts higher lows thereof which may be eyeing a relief rally now. That direction signals more upside in the near term, but even further to the upside will require Ripple to keep pushing on this $2.80 area and surmount it.
However, despite the positive signs, there are some bearish signals being sounded by some analysts. Ali Martinez mentioned that the TD Sequential signaled a sell on the 3-hour chart. This could suggest short-term downward movement after token rose by 11% in recent days.
In terms of whales, the long-term holders of the XRP token have continued to accumulate the token. Santiment data also gives insight of scores of whales purchasing about 150 million XRP in the past two days totaling $388 million. Such buying activity is a clear indication that major investors still think that the token price at the moment is undervalued and could soon surge.
Source: Santiment
XRP’s Potential for Surge
This increase in the amount of whales also contributes to the general positive outlook in the market. These significant holders are already estimating how much they can buy at any given price level, and it seems that now a growing percentage of the market in some ways is long in the name of Ripple token.
In the derivatives, cryptocurrency falls further and short positions are taken only for liquidation, with $2.83 million taken short liquidation in the last 12 hours. This suggests that there is a conviction that XRP is on an uptrend since more traders are moving to the long side from short positions waiting for higher prices.
Source: CoinGlass
Therefore, the next few days will be very significant as XRP continues to touch high resistance points. If the token goes above $2.80, it could potentially go higher up to $3.00. Though, another rejection of price mean, extended sideways movements are possible. Investors and traders should remain vigilant in the upcomings days to see some other changes.
