Over the past year, Ripple’s native token, XRP, has been in a consolidation phase. However, it has recently broken out from a bullish price action pattern, indicating a potential surge in upward momentum. This significant breakout coincides with speculations about United States Securities and Exchange Commission (SEC) Chairman Gary Gensler considering resignation, adding an intriguing twist to the market dynamics.
XRP Technical Analysis and Upcoming Levels
Expert technical analysis reveals a bullish outlook for XRP as it has successfully broken out of an ascending triangle pattern on the weekly timeframe. The token has closed a daily candle above the critical neckline at the $0.75 level, shifting market sentiment from a correction phase to a notable uptrend.
With this momentum, XRP is anticipated to rally up to 75%, potentially reaching the $1.35 level. However, it might face substantial resistance near the $0.90 mark, a level historically known for strong selling pressure. The current market sentiment, fueled by speculation regarding Gensler’s resignation, could help XRP overcome this resistance.
In addition, XRP is now trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, reinforcing the bullish trend. This technical indicator is often used by analysts to confirm the direction of the market trend.
Bullish On-Chain Metrics
The positive outlook for XRP is further supported by bullish on-chain metrics. Data from the on-chain analytics firm Coinglass highlights that XRP’s Long/Short ratio has surged to 1.18, its highest level since August 2024. This increase indicates a strong bullish sentiment among traders.
Currently, 54% of top traders are holding long positions, while 46% are shorting the asset. Moreover, XRP’s open interest has seen a dramatic increase, spiking by 24% in the past 24 hours and by 12% in the past four hours. These metrics suggest a growing interest and confidence in the asset’s upward trajectory.
Current Price Momentum
As of the latest update, XRP is trading close to the $0.80 mark, reflecting a significant price gain of over 18% in the last 24 hours. This surge is accompanied by a 35% increase in trading volume, indicating heightened interest from traders and investors eager to capitalize on the bullish breakout.
The ongoing developments and market dynamics surrounding XRP present an exciting phase for traders and investors. With its recent breakout and the potential for further gains, XRP stands at a pivotal point that could define its trajectory in the crypto space in the coming months.
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