XRP Eyes $5? Breakout Above $2.70 Could Trigger Explosive Rally
- XRP closing above $2.24 may mark the return of bullish momentum after a period of price consolidation.
- A breakout past $2.47 signals strong upward momentum, hinting at a sustained trend reversal in XRPs favour.
- If XRP surpasses $2.70, analysts foresee a major rally, possibly pushing the price toward the $5 range.
The price of XRP may be gearing up for a major rally due to increasing proximity to resistance implications. In an X post on Friday, Egrag highlighted the possibility of a bullish trend if XRP is able to close higher than the following points. The present levels are considered by market observers as the critical points to watch so as to determine the direction of the XRP.
Short-Term XRP Targets
The first price level is at $2.24, which corresponds to the 21-day Exponential Moving Average. A daily cross above this mark would act as the first signal of strength in the short term. This would make it mean that the bulls are starting to return after some sort of correction period.
Subsequently, a breakout above $2.30 could be interpreted as the second signal that the value is under positive pressure. This level is the 0.382 Fibonacci retracement level and is typically a key area where the trend indicators are looked at concerning turning points. Crossing this zone could mean that XRP will be able to gain the attention of the technical analysts and short-term traders.
Source: Egrag Crypto
The third price threshold is at $2.47, the level that corresponds to the 0.5 Fib level. A movement above this level will be much more powerful, suggesting the continuation of the current trend. This level has served as a pivot point for each XRP price swing in the past, and a breakout suggests the project is really picking up the pace.
Major Breakout Signal
The strongest level of resistance has to be around $2.70, as it is supported by the 0.618 Fibonacci level and a long-term trend line. Such a break above the visible price range would be the strongest technical signal, which refers to the concept of a breakout. Should this occur, XRP may be on the brink of an exceptional surge.
According to the analyst, this target price is derived with reference to the Fibonacci extension level, and it extends as high as $5. This would position token at a new all-time high ground, an ideal stance that does not speak of the former market challenges. As of press time, the Ripple token is trading at $2.04, showing a 2.04% increase over the past day.
However, the challenge of market uncertainty is still paramount, which has been evident from the optimistic predictions made in the preceding year. And though analytical patterns offer direction, external factors like regulatory changes or macroeconomic fluctuations can easily upset the equilibrium. Investors are advised to refrain from taking overly aggressive positions as the system is leveraged.
Read more: https://www.tronweekly.com/xrp-eyes-5-breakout-above-2-70-could-trigger-explosive-rally/
Text source: TronWeekly
