XRP Bounce From Trendline Validates Breakout, Bulls Set Sights on $4.5
- XRP surged 50% in five weeks, hitting $2.42 but still 30% below Januarys $3.40.
- Analysts expect a breakout if XRP holds $2.4; targets include $2.9, $3, and $4.5.
- A death cross on the 4-hour chart signals potential slowdown if support breaks below $2.20.
Ripples XRP surged back to $2.42 on May 16 after gaining more than 50% in the past five weeks. The move marks a strong comeback from earlier declines, though the token still trades 30% below its January peak of $3.40. Despite this, analysts are confident that conditions are setting up for a possible breakout.
Analyst, Egrag Crypto, highlighted a breakout from a descending triangle seen in the daily timeframe. He believes XRP could reach $3.40 again if the current momentum continues, bringing it back to its January high.
Analyst Ted shares a similar view. He noted that XRP not only broke out of its downtrend but also turned that resistance into support. Ted believes if the cryptocurrency holds above $2.4, it could move up to between $2.9 and $3 in the next few weeks.
At the same time, analyst CW highlighted XRPs perfect retest of the falling wedge breakout, suggesting that the bounce off the trendline is a positive sign. CW said in a recent post, $XRP started to bounce off the trendline after the correction. This is a perfect retest. The rally will start again.
According to CWs analysis, the price action suggests buyers are stepping in to support the wedges upper boundary. If the token holds above this level, it could confirm a continuation of the uptrend and push the token toward his predicted target of $4.5. That would mark an 85.19% gain from current levels.
XRP Death Cross Clouds Momentum in Short Term
Despite optimistic projections, short-term indicators are showing signs of weakness. XRPs nine-day Simple Moving Average is on the decline and has fallen below the 21-day SMA. This crossover formed a death cross on the 4-hour chart, which often signals the possibility of a downturn.
While this doesnt guarantee a crash, it does suggest XRP could lose momentum. Analysts warn of a possible consolidation phase if the coin stays stuck in this pattern. Such a pause in movement could stretch on for some time, especially with uncertain sentiment in the broader crypto space.
XRP needs to hold above the $2.20$2.30 support range. A fall below could invite stronger selling pressure. On the other hand, if a rise in trading volume pushes XRP past $2.68, theres potential for a push to $2.87. Still, the $3 mark continues to be a hard ceiling, acting as both a psychological and technical barrier.
Whale activity and other large market moves will likely decide whether the cryptocurrency continues climbing or slips back. Traders watching the charts closely are waiting for the next strong signal to confirm a direction.
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Read more: https://www.tronweekly.com/xrp-bulls-set-sights-on-4-5/
Text source: TronWeekly
