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XRP’s long-awaited move beyond the $0.6 resistance level could be on the horizon.
Several XRP community members are frustrated with the coin’s inability to break the $0.6 resistance level. Despite receiving legal clarity in the SEC v. Ripple lawsuit, XRP has traded around the $0.6 mark since November.
Enthusiasts Blame Ripple For XRP Low Performance
Notably, some enthusiasts have attributed XRP’s low performance to Ripple’s monthly sales of XRP, where hundreds of millions of XRP are sold on secondary markets.
It is no longer news that Ripple releases 1B XRP coins on the first day of every month. While 80% (800 million) of the tokens are locked back in escrow, Ripple dumps the remaining 20% (200 million) XRP in the market.
Many enthusiasts believe Ripple’s monthly XRP sales have hindered the coin from breaking the $0.6 resistance level. On the contrary, several analysts have dismissed this speculation, emphasizing that the forces of demand and supply determine XRP price movement.
3 Reasons How XRP Can Break the $0.6 Resistance Level
That said, we’ve highlighted three>XRP Consistency Above EMAs
The XRP/USDT charts show that the coin is currently squeezed between the 50-day and 100-day Exponential Moving Averages (EMA). Historically, these EMAs serve as a bullish indicator of underlying strength.
Specifically, the 50-day EMA has consistently offered vital support, with the price of XRP bouncing off this line several times. The consistency indicates that there is strong buyers’ interest in XRP. This interest could help XRP break through the $0.6 resistance level if each rebound weakens the resistance overhead.
Appearance of Descending and Symmetrical Triangle on XRP Charts
The XRP chart shows a descending triangle as well as the formation of a symmetrical triangle. These two trends suggest that XRP could be preparing for a decisive move. Here, the crucial point to look out for is where the converging lines meet.
The combination of a surge in volume and a major breakout could take XRP beyond the $0.6 resistance level. Interestingly, as the sixth-largest cryptocurrency by market cap approaches the symmetrical triangle, the likelihood of a breakout increases significantly.
Historical Recovery and Resilience
XRP has a track record of overcoming significant resistance levels during recovery. The cryptocurrency can replicate the same pattern in the current market dynamics.
This important feat offers psychological benefits for XRP, which can help the coin to break through the $0.6 resistance level. In the meantime, XRP was changing hands at $0.574, down 4% over the past 24 hours.