XRP Price Alert: Breakout Could Confirm Today
16 February 2024 - 3:00AM
NEWSBTC
The XRP price has been in a downtrend since mid-November 2023.
However, the XRP bulls seem to be taking control again if the
following happens. An analysis of the 1-day chart of XRP/USD
reveals that a potential price breakout is imminent. As of February
15, 2024, the price indicates an uptick in bullish momentum, with
the pair currently trading at $0.55335, marking a 4.1% increase in
the last 24 hours. A closer inspection reveals that XRP is
challenging two critical resistance levels. XRP Price Needs To
Break These Levels First, the Fibonacci retracement levels, drawn
from the swing high at approximately $0.74854 to the swing low at
$0.43085, show that the XRP price is currently facing the 0.618
level at $0.55221, which is a notable level for traders as it often
acts as a pivot in market sentiment. XRP’s push through this level
could indicate a shift towards a bullish outlook. Related Reading:
Binance Stirs The Waters With A 200 Million XRP Transfer – What’s
The Plan? Second, the 1-day chart also features a descending
channel pattern, which began forming in early-December 2023. The
upper boundary of this channel has been tested multiple times, and
the current price action is once again approaching this boundary. A
definitive breakout above this descending channel could signal a
trend reversal. For this to happen, the XRP price needs to break
above the $0.55 mark, which coincides with the 0.618 Fibonacci
level. Adding to the bullish narrative, the Exponential Moving
Averages (EMAs) show a potential bullish crossover in progress. The
EMA 20 (red line) at $0.52865 is trending upwards, suggesting
short-term momentum is gaining. The EMA 50 (orange line) and EMA
100 (green line) are positioned at $0.54761 and $0.56331
respectively, with the EMA 200 (blue line) at $0.55985, serving as
a long-term momentum indicator. A break above this cluster of EMAs,
especially the 200-day EMA aka “bull line” could add to the bullish
arguments. Related Reading: XRP Price Could Surge from New
Acquisition, Amid Community Skepticism Notably, volume levels have
been moderate, and the Volume Oscillator does not show any abnormal
spikes, indicating that the current price increase is not yet
backed by significant trading volume. This could suggest that the
breakout, if it occurs, may need to be confirmed with higher volume
to sustain the move. The Relative Strength Index (RSI) is at 59.62,
which is below the overbought threshold of 70, indicating that
there is still room for upward movement before the asset is
considered overbought. Breakout Confirmation Today? Overall,
traders need to keep a close eye on whether the XRP price can
sustain its movement above the $0.55 to $0.56 range. If this is
accompanied by an increase in volume, it could confirm the breakout
from the descending channel and possibly lead to a new uptrend.
Given the current technical setup, today’s trading session is
crucial for determining the short-term direction of XRP. If XRP
closes above the 0.618 Fib, descending channel as well as 200-day
EMA, the bulls could finally be back. Featured image created with
DALL·E, chart from TradingView.com
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