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XRP, the seventh largest cryptocurrency, faces a crucial test as it makes frantic efforts to establish a fresh price move. The outcome of this test could determine its short-term price trajectory, with a potential breakout paving the way for significant gains.
Technical analysis pinpoints a key resistance level that could pave the way for XRP price's upward trajectory.
If XRP can break above this resistance, it could trigger a surge in buying activity, pushing the price toward higher targets. Conversely, failure to break through might extend the current consolidation or a potential pullback.
The resistance level at $0.578, which coincides with the daily SMA 200, has been identified as key for the XRP price. This level along with the daily SMA 50 at $0.529 had constricted XRP price since mid-April. XRP recently saw a breakout past the daily SMA 50, leaving it with the daily SMA 200 to contend with.
A successful breach of this barrier could signal a bullish reversal, potentially leading to a 40% rise and allowing XRP to reclaim its March high of $0.748. However, before it can reach this high, it must first overcome barrier levels at $0.642 and $0.662. This scenario also depends on XRP sustaining above the daily SMA 50.
In light of this, market analysts are closely watching XRP price action for signals of potential breakout.
However, if XRP fails to break the resistance, it may extend its current consolidation phase, trading within a range while awaiting new catalysts to drive momentum. A pullback could see XRP retesting support levels around $0.50 or lower. Conversely, a breakdown below $0.467 could lead to a bearish scenario that might lead to a retest of the $0.42 level.
At the time of writing, XRP was down 0.19% in the last 24 hours to $0.535, per CoinMarketCap data.
With the market's eyes fixed on these developments, the coming days could be pivotal for XRP's price. Whether it will surge past the identified resistance levels or face a setback remains to be seen.