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As buyers challenge a long-coming resistance trendline, will XRP target $0.72 on a breakout run?
The altcoin market enters a breather phase as Bitcoin price hangs near $58,700. Amid the altcoins, XRP witnessed multiple broader market changes with Grayscale’s recent fund launch and Robinhood relisting it.
Will the newfound attention and the rising demand lead to a breakout rally in XRP?
XRP in a Triangle
In the daily chart, last week’s XRP price jump takes a bearish reversal from a long-coming resistance trend line. This marks the sixth bearish reversal from the overhead trend line.
On Sunday, the 4.38% price fall in XRP undermined the 4.13% jump on Saturday, resulting in a bearish engulfing candle. Currently, the XRP price is hanging close to the $0.5728 mark, with an intraday gain of 0.45% and a long tail formation as its 24-hour low stands at $0.5599.
The dynamic average line of 50-day EMA supports the XRP price. Meanwhile, the crucial EMAs 50, 100, and 200 are on the verge of gaining bullish alignment as the recovery rally gains momentum.
Furthermore, the bullish crossover in the MACD and signal lines sustain a positive trend, with a hike in bullish histograms.
Bulls Struggle As Robinhood Relists XRP and Grayscale’s XRP Fund Launch
Amid the increased volatility, bullish developments, such as the token’s re-entry into the Robinhood platform, further support XRP’s potential uptrend.
In July 2023, the XRP token gained legal clarity and was relisted on major exchanges, but Robinhood stayed back. As Robinhood finally relists the token, traders are anticipating a recovery rally in the XRP prices of almost double digits.
However, the recent news of Grayscale revealing an asset investment fund completely focused on XRP fails to boost the XRP prices above the overhead trendline. Hence, the likelihood of a news-based recovery for a breakout rally is limited.
XRP Price Targets
Based on the price action analysis, XRP is currently confined within a triangle formation and is testing the 50% Fibonacci retracement level at $0.57141.
The upside target for XRP, according to Fibonacci retracement levels, is $0.65821, which represents the 78.60% level. On the downside, support is situated at $0.49128, just below the psychological $0.50 mark, which corresponds to the 23.60% Fibonacci level.
If the price breaks out bullishly from the triangle, it could potentially reach the 100% Fibonacci level at $0.7231, which is also the highest closing price from March 11.
Conversely, the dynamic support provided by the 200-day EMA at $0.5490 will be crucial to maintain the ascending trend before considering the trendline support.