XRP has gained considerable traction this week, climbing by 12.5%, as it successfully broke through a bullish flag pattern and surpassed the 2020 highs. This marks an important step in the ongoing price recovery, as XRP continues to show strong bullish potential.
Last week, XRP experienced a retracement from the 200-day moving average (MA) resistance, but this pullback soon turned into a bullish flag pattern. Over the weekend, the breakout from this pattern saw XRP not only surpass $0.781, which had previously served as resistance, but also climb above the July high. More importantly, XRP managed to break above the 2020 high at $0.8282, indicating that a new upward phase might be starting.
This breakout is supported by the 4-hour chart, which illustrates the clear movement above the previous resistance levels. However, for confirmation of this bullish trend, a daily close above $0.8282 is crucial.
If XRP can close above $0.8282, the next resistance lies at $0.89, near the 100-day MA and the 1.272 Fibonacci extension level. Beyond this, the price could aim for $1.00, followed by $1.12 (which aligns with the .5 Fibonacci level), and potentially even $1.25, a significant level last seen in February 2018.
To the downside, XRP has solid support at $0.8 (coinciding with the 200-day MA). Additional support levels are found at $0.78, $0.7, and $0.65.
The RSI is showing bullish signs, steadily rising and reinforcing the idea that positive momentum is building within the market.
Against Bitcoin, XRP had faced resistance at a long-term descending trendline, but today, it broke through this level. The price had been constrained by this downtrend for weeks, making this breakout significant. However, resistance remains at the 50-day MA, and traders will need to see a daily close above this line to confirm the trend reversal.
A confirmed break above the 50-day MA could pave the way for XRP to revisit its June highs, as the market would shift in favor of bulls. At present, the 50-day MA and the descending trendline have been holding XRP back, but the recent break suggests that the bulls are gaining strength.
If XRP continues its upward trajectory, the next key resistance lies at 1850 SAT, near the 50-day MA. Further resistance is expected at 1900 SAT, 2000 SAT, and 2120 SAT (aligning with the .236 Fibonacci level).
On the flip side, the first line of defense for XRP bears lies at 1800 SAT, which coincides with the 200-day MA. Additional support levels are found at 1660 SAT, 1600 SAT (August low), and 1550 SAT (a low from November 2020).
With the RSI now moving above the midline, the bullish momentum is strengthening, suggesting that XRP may soon break through the 1900 SAT level and potentially exceed its July highs.
