For the first time since the Ripple victory in July, the XRP price has broken above the resistance line. What are three possible outcomes for XRP?
In July, XRP experienced its biggest rally after Ripple scored a major victory in the SEC case. XRP yielded to mounting bearish pressure in the following weeks, dropping under a descending resistance line. XRP touched $0.90 after the historic win against SEC and then lost all the gains, falling to $0.45 on Sep 11.
Rallying along with the crypto market on September 18, the price of XRP has recovered above the $0.5000 resistance. The rally above $0.5000 marks the first time XRP will trade above the descending resistance line it fell under in July.
At the time of this writing, the price of XRP stands at $0.5032, marginally above the resistance level. XRP has gained 0.73% in the last 24 hours and 6.31% over the last seven days.
However, three scenarios can play in the coming days with no clear break above this resistance level.
Scenario 1: A Bull Run
The $0.5000 price level is considered a major support/resistance level for XRP. Flipping this level could start a major rally for the altcoin. However, XRP bulls must keep the coin price above $0.5000 for this to happen.
If $0.5000 is converted into a resistance level, then XRP could experience a short-term bull rally. A short-term target is $0.55 before XRP could rally to as high as $0.7000. The popular XRP trader, @UniverseTwenty, has predicted a rally to $1 for XRP if the bullish conditions hold.Â
Scenario 2: A Strong Bear Market
If bears regain control of the XRP market and the dreaded death cross pattern is completed, XRP could suffer a major bear market for the rest of September.
The 21 exponential moving average (EMA) must fall below the 200 EMA for the death cross to happen. If this happens, the popular crypto chartist EGRAG has predicted a decline to $0.4300.
Scenario 3: Consolidation Continues
If XRP fails to convert the $0.5000 resistance into a support level, it could fall back into its consolidation range.
Since the beginning of September, XRP has traded between the $0.4700 and $0.5000 range. However, with the current high volume of XRP (+65% in the last 24 hours), this is probably the least likely of the three scenarios.
Breaking above the $0.5000 puts XRP at a crossroads with no clear direction. However, the sentiment of the broader crypto market would play a part in determining whether XRP bulls or bears take control of the market.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.