The post XRP Breakout Ahead? Technical Outlook Suggests $5 as Initial Bullish Target appeared first on Coinpedia Fintech News
Ripple recently won its legal case against the SEC, bringing back confidence among investors and removing concern around XRP. Now that the legal issues are out of the way, there’s growing excitement about a potential XRP ETF. Ripple is also working to expand its global payment network, aiming to handle a share of SWIFT’s money transfers.
Besides, XRP’s supply is released in a controlled way through monthly unlocks, which helps avoid sudden price drops. As interest in useful crypto projects grows, XRP is gaining more attention. Ripple’s focus on real-world use and strong partnerships with banks could increase demand for the token. These positive developments are helping XRP gain strength in the market and could push the XRP price higher.
Is $5 a Realistic Target for XRP Price in the Next Few Months?
Reaching $5 may sound ambitious, but current market and ecosystem developments make it more realistic than before. XRP recently broke out of a multi-year consolidation pattern, a move that often leads to rapid price acceleration, especially during broader crypto bull runs. On the other hand, the bulls appear to be very optimistic about the upcoming price movement, which is reflected in the XRP price rally, gradually approaching the key resistance level.
The XRP price is currently testing one of the crucial levels, which is situated at the resistance of the falling broadening wedge. These patterns are usually bullish, as a breakout leads to a sustained upswing, breaking all the barriers. Currently, the bulls appear to have weakened after testing the resistance, which indicates a short-term pullback might be in the cards, potentially reducing the selling volume. With this, the bulls may reclaim their dominance and act accordingly.
The CMF has gone parabolic, while the RSI displays a bearish divergence. This suggests the XRP price could be primed to test the support zone between $3.10 and $3.11. As the rally is believed to remain stuck above $3, the XRP price discovery is expected to kick-start very soon.