Emily Walker
In the last 24 hours, XRP has dropped below the $3 threshold once again. It initially rose past this mark on January 15, achieving a significant milestone by trading above this level for the first time in seven years. Unfortunately, the price fell back below $3 in the latest trading session.
Despite this, XRP’s previous rise above $3 reflects its potential to return to, and possibly exceed, this level. This is especially noteworthy given the skepticism from some crypto analysts labeling it as a dying asset. An interesting finding from a TradingView analysis indicates that XRP may be gearing up for another breakout, aiming not only to reclaim $3 but also reach above $3.5 soon.
XRP Remains Stable in Equilibrium
A technical analysis of XRP’s price activity on a 3-hour candlestick chart shows that the cryptocurrency has sustained a stable position within an equilibrium zone, despite the significant fluctuations in the broader crypto market in recent days, especially around Donald Trump’s inauguration.
The analysis reveals that XRP is following a wedge pattern, which historically signals important price changes. This pattern began forming on January 16 when XRP peaked at $3.38 before initiating a corrective trend. The cryptocurrency is now displaying a tightening range, signifying a balance of buying and selling pressures that could lead to a breakout in either direction.
The consolidation within the wedge pattern appears to be nearing its apex, with analysts suggesting that this is a strong indicator of XRP’s readiness for a bullish move. They anticipate that XRP will rebound above the $3 level, targeting $3.5 before any potential correction happens.
Risks: Bearish Divergence on Weekly RSI
While the forecast for XRP is largely positive, the technical analysis does reveal a potential bearish divergence on the weekly RSI. This divergence occurs when the asset’s price increases, but the RSI shows diminishing momentum.
This situation does pose a risk; however, the analyst believes that the existing wedge pattern and XRP’s consistent performance could mitigate this bearish aspect. Its ongoing position within the accumulation zone is another positive sign. If a significant drop were anticipated, it likely would have happened by now. The resilience of XRP in this area indicates robust support from buyers, counteracting selling pressure through steady buyer interest.
If XRP achieves the projected $3.5 target, this would represent an 18.5% increase from its current price and exceed its previous all-time high of $3.40. However, this is viewed as a short-term target. Long-term forecasts for XRP are significantly higher, with potential targets between $7 and $20.