Disregard XRP is Dead Narrative A Different Story is Told by This Price Signal
Over time, critics have labeled XRP a ‘dead’ digital currency due to its failure to show significant price movements in line with other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
However, recent price movements and technical indicators indicate that the narrative of XRP’s decline may be premature. According to an analysis by TradingShot on June 25, there are compelling reasons to believe in a potential bullish breakout for XRP.
The expert pointed out that XRP has been consistently trading below its one-week moving average (1W MA200) since April 8, 2023. Despite this, the cryptocurrency is currently testing the bottom of a long-term triangular structure that began forming after the January 2018 all-time high.
The current triangle pattern resembles a previous one that started following the December 2013 high. This historical parallel suggests a potential for similar bullish behavior in the current market.
One of the critical technical indicators to watch is the one-week Relative Strength Index (RSI), which is currently at 40. Historically, this level has been associated with long-term buying opportunities.
If XRP breaks above the 1W MA200, it significantly increases the probability of initiating a parabolic rise toward the cycle’s top. Conversely, failure to break this resistance could mean that XRP will need a new narrative to attract investors.
XRP has been forming a series of lower highs and higher lows, indicating a consolidating triangle pattern. These moving averages have been crucial resistance levels, and a break above them would be highly bullish.
In the short term, XRP continues to be weighed down by bearish sentiment, with the asset trading below the major $0.50 resistance. As of press time, XRP was trading at $0.475, dropping over 1% in the last 24 hours.
Overall, for XRP to realize a parabolic rally, one determinant factor will be the outcome of the legal battle between parent company Ripple and the Securities and Exchange Commission (SEC). A positive outcome would be a bullish signal for the token.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
