Analysts argue that XRP is currently showing signs that could signal a significant price movement in the near future.
These assertions came from separate analyses from market commentators EGRAG and Mickle, both part of the XRP community. In a recent post on X, EGRAG revealed a bullish setup on the daily XRP chart, confirming its strong market position.
XRP Avoids Lower Lows
In the chart, XRP trades within a broad sideways range, marked by a resistance level near $0.75 and a support level around $0.38. The price has been oscillating between these levels, and the absence of a lower low suggests that the current consolidation phase might be a prelude to a breakout.
Moreover, the 7-day moving average (MA7) is currently above the price, indicating short-term bearish momentum. However, the longer-term 25-day (MA25) and 99-day (MA99) moving averages are holding steady. This confirms that the overall trend remains intact despite the recent drop.
Additionally, the Relative Strength Index (RSI), which measures the magnitude of recent price changes, is in the oversold territory, with values of 11.17 (RSI(6)) and 26.56 (RSI(12)). This low RSI level indicates that XRP may be nearing a bottom. Accordingly, a trend reversal could be in the works.
EGRAG pointed out that despite recent volatility, XRP has not made a lower low. The absence of a lower low shows that the asset is maintaining a strong support level despite the bearish condition. Consequently, EGRAG charged investors to enter the market and relax, affirming his confidence in XRP’s potential.
Parallels with Previous Market Cycles
Meanwhile, market commentator Mickle also drew comparisons between the current XRP market structure and historical price patterns.
According to him, XRP is in the process of completing a symmetrical triangle pattern, similar to the one observed between 2013 and 2017. Back then, XRP experienced a significant price increase following the completion of this pattern, leading to one of the most parabolic moves in cryptocurrency history.
Mickle also emphasized that during the previous cycle, XRP’s fundamentals were improving while the broader market largely ignored the asset.
A similar situation is unfolding now, with Ripple continuing to forge partnerships and strengthen its position in the financial industry, even as XRP’s price remains subdued. According to Mickle, these strong fundamentals are setting the stage for another potential explosive move.
Another factor contributing to the bullish outlook for XRP is the conclusion of the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Mickle believes that the recent resolution of the case sets the groundworks for greater XRP adoption, potentially bolstering its growth prospects.
Disclaimer: 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’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
