In a bullish turn of events, the XRP token has flipped its previous resistance zone into a solid support area, clearing the way for a likely price rally toward the $4.00 threshold and beyond. According to crypto market analyst CRYPTOWZRD, the current price action is reminiscent of XRP’s historic rally during the 2017 bull run, hinting at the possibility of another significant price breakout in the coming days.
⚠️ $XRP HAS FLIPPED!!!! 🤯
If you thought the first rally was bullish wait until you see the next.. 👀
🔮 XRP has flipped previous resistance to support, it is now ready to rally to $4.00 & then $8.00 in the Higher Time Frame 🚀
Mirror Image of 2017.. 🤩 https://t.co/Ip9S8Fo61U pic.twitter.com/PF4J7uylMy
— CRYPTOWZRD (@cryptoWZRD_) January 12, 2025
CRYPTOWZRD’s analysis further highlights a breakout above a symmetrical triangle, a well-known bullish pattern often preceding sharp price surges. With the resistance now acting as support, the XRP cryptocurrency is poised to target $4.00 in the short term, followed by an extended run toward $8.00.
XRP On-Chain Data Reinforces Bullish Outlook
According to CoinGlass data, the XRP’s open interest climbed to a new all-time high of $5.42 billion yesterday, highlighting heightened participation in the XRP market. Such spikes in open interest often signal anticipation of strong price movements, aligning with the token’s recent breakout and bullish price structure.
Additionally, the weighted funding rate remains positive, albeit near neutral, suggesting a balanced market with a slight bullish bias. This indicates that traders are maintaining long positions while waiting for confirmation of XRP’s next move. As funding rates stabilize, the prospect for a continued rally grows, reinforcing the view that XRP could sustain its upward momentum in the near term.
XRP Bullish Trend Intact, Yet Short-Term Momentum Slips
On the weekly chart, the XRP’s relative strength index reveals sustained bullish sentiment, currently at 74.84—well above the overbought threshold of 70. While this suggests the asset is in an overbought zone, typically a precursor to price corrections due to intense buying activity, such conditions can sometimes fuel prolonged rallies during strong uptrends.
In XRP’s case, the RSI is edging closer to the critical 70 mark at press time, raising questions about whether the token can maintain its upward trajectory. A decisive drop below 70 might spark a bearish reversal while holding firm above this level could pave the way for further gains.
The token’s MACD indicator echoes a similar sentiment. The MACD line, perched at 0.5093, remains firmly above the signal line at 0.3820, reflecting an underlying bullish trend. However, the shrinking green bars on the histogram suggest waning buying pressure, raising concerns about the cryptocurrency’s ability to sustain its current pace.
Meanwhile, XRP’s trading volume declines, hints at reduced market participation. This dip in activity could signify traders locking in profits or waiting for a more transparent market direction before entering new positions in the XRP cryptocurrency.
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