XRP Shows Promising Buy Signal on 3-Day Chart, Indicating Potential Breakout

Analysts identify an XRP buy signal, highlighting conditions necessary for a breakout while pointing out crucial support and resistance levels.

XRP has continued to consolidate since late last month. Amid this dull period, market watchers have shared valuable insights into its price projections. While Ali Martinez recently identified a crucial buy signal, Egrag delved into important support and resistance levels.

Ali’s evaluation of the 3-day chart reveals that the TD Sequential indicator has presented a buy signal for XRP, signaling a potentially favorable opportunity for investors.

#Ripple | The TD Sequential presented a buy signal on $XRP 3-day chart.

Still, #XRP must hold above $0.45 to surge to $0.51. Note that slicing through $0.51 could trigger a breakout to $0.60. pic.twitter.com/lGSzlf8Sxh

— Ali (@ali_charts) July 10, 2023

The TD Sequential helps identify potential trend reversals and exhaustion points in movements. When the indicator presents a buy signal, it suggests that there may be a high probability of a price increase in the asset, making it an attractive entry point for investors.

While Ali confirms XRP’s potential to break out of its current-ranging trend, the analyst emphasizes the conditions necessary for this breakout. According to him, for XRP to experience a substantial surge, it must maintain a price level above $0.45. 

By holding above this threshold, there is a strong likelihood that XRP could rally to $0.51, indicating a potential increase in value. 

However, the real breakthrough may occur if XRP scales through the $0.51 mark, potentially triggering a breakout that could propel the cryptocurrency’s value to $0.60. The last time XRP saw $0.51 was on June 22.

Crucial XRP Support and Resistance Levels

In addition to Ali’s analysis, fellow analyst Egrag provides further insights into crucial support and resistance levels for XRP. Egrag points to various colored lines on the chart, each representing a different aspect of XRP’s price action.

#XRP Lines Within Lines (Breakout Is Imminent) ??

? White Lines – Ranging:
⚙️ The micro ranging area between 0.38c – 0.54c serves as a foundation, allowing for stability and growth. The longer the consolidation, the greater the potential for an explosive upward movement.… pic.twitter.com/4MyHl2wWjF

— EGRAG CRYPTO (@egragcrypto) July 10, 2023

According to the analyst, the white lines indicate an area between $0.38 and $0.54, which he describes as a foundation for stability and potential growth. The longer XRP consolidates within this range, the greater the possibility of witnessing an explosive upward movement in the future.

However, the red lines represent historical resistance points, ranging from $0.55 to $0.62. Resistance levels are price levels at which selling pressure has historically been intense, causing the price to reverse or stall. 

While these levels have typically acted as barriers for XRP, Egrag suggests that once XRP breaks free, it tends to swiftly and aggressively overcome resistance. However, he cautions that it might take some time for XRP to build the necessary momentum.

Egrag also emphasizes the importance of the green lines, representing support levels ranging from $0.30 to $0.33. These support areas have consistently played a crucial role in XRP’s price action. 

Despite the possibility of support levels being undermined by FUD or unforeseen circumstances, Egrag maintains that the $0.30 price point remains a formidable support point for XRP. XRP’s lowest defense level this year has been the $0.3473 point.

Potential Triangle Formation

Moreover, Egrag acknowledges the potential emergence of a blue triangle formation, indicating an ongoing period of price consolidation. This phase is anticipated to continue until the conclusion of the triangle formation on July 31. Consequently, XRP’s price trajectory is expected to stay within a range until that time.

Meanwhile, XRP is currently trading for $0.4757. A bullish close to yesterday saw the asset end the day with a 2.14% gain. XRP is up 2.13% over the past 24 hours, looking to recapture and maintain $0.48.