XRP shows signs of potential price breakout, as its Stochastic RSI finally breaches a downtrend that has plagued it for over a year.
Market analyst Big Mike confirmed this on Twitter, sharing a 1-month XRP chart to corroborate his findings. The chart indicates that monthly Stoch RSI had been moving underneath a downward trendline since it dropped from the 87.97 peak in July 2023.
Stoch RSI Breakout
For context, this Stoch RSI peak last July coincided with XRP’s rapid price spike during that period, which saw it reclaim $0.93 on the back of the pivotal summary judgment in the Ripple v. SEC lawsuit.
However, XRP corrected the gains it picked up weeks later, leading to a slump in the monthly Stoch RSI. Nonetheless, after dropping to a low of 3.27, the indicator appears to be recovering. Despite the ongoing market uncertainty, the Stoch RSI has recorded an impressive spike in recent times.
It has now broken above the downtrend, which lasted for 14 months. This development coming up during times of market uncertainty indicates that XRP is showing strength despite the ongoing turbulence. This could fuel an extensive rally if the bulls maintain this strength.
Elliott Wave Pattern Suggests Rally
The projection of a breakout coincides with XRP entering the final leg of an Elliott Wave structure. In the monthly chart, XRP is currently moving through an Elliott Wave structure, currently in the fifth wave.
This fifth wave is the final impulsive wave following the fourth wave, which often leads to corrections. According to the projection from Big Mike’s chart, XRP could surge as high as $9+, marking the top of the fifth wave.
The chart also features a symmetrical triangle, supporting this bullish outlook. Symmetrical triangles usually indicate periods of consolidation, followed by a breakout. With XRP nearing the apex of this triangle, a breakout appears imminent, possibly propelling the price towards the $9 region.
XRP Volume Profile and Support Levels
Meanwhile, the XRP volume profile reveals a strong support base between $0.20 and $0.30. This zone serves as a psychological barrier where buying interest could prevent prices from falling significantly in case of any pullback.
In addition, it also suggests that any corrective movement after the projected wave 5 rally could find stability around these levels.
Beyond the Stoch RSI, the traditional Relative Strength Index (RSI) confirms the prevalent market uncertainty. Notably, the monthly RSI has steadied between 55 and 47 since last July. A rapid surge triggered by the breakout could push it above 70 just as in April 2021. XRP currently trades for $0.5377.
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.
