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XRP is trading at a crucial time after several days of volatile price action, leading to renewed optimism among investors. Some analysts believe that XRP is about to break out of a massive four-year bullish triangle pattern, which has served as an extended accumulation period.
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This technical formation has been steadily building up and now XRP appears poised for a significant expansion phase. After years of underperformance due to the ongoing SEC lawsuit and broader economic uncertainty, the market is closely watching for a potential breakout. If XRP breaks through its current resistance levels, many expect a parabolic rally, potentially leading to new highs.
Investors are eagerly awaiting confirmation of this move and view it as a pivotal moment in XRP’s long-term market trajectory. As momentum builds, XRP’s next steps could determine its performance in the coming months and its role in the broader crypto market.
XRP price action suggests a bullish breakout
The entire crypto market has seen a massive rise, with Bitcoin and many altcoins seeing double-digit price increases. This rally follows the Federal Reserve’s recent decision to cut interest rates by 50 basis points, sparking optimism among investors who believe a new crypto bull run is underway. XRP investors are also optimistic, as analysts share promising insights pointing to positive performance in this cycle.
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A prominent crypto analyst, Carl Runfelt, shared his technical analysis on XThis highlights the bullish triangle pattern that XRP has formed since 2020. According to Runfelt, XRP could experience explosive growth during this bull cycle, which could potentially go parabolic and rise by more than 200% within weeks if the pattern were to break. The key level to watch is $0.60, which has acted as significant resistance in recent weeks.
If XRP rises above this critical price point, it could trigger a wave of fear of missing out (FOMO), making demand material and driving prices to new highs. Investors are watching this level closely and anticipating a breakout that could change XRP’s trajectory for the remainder of the cycle.
Crucial liquidity levels
XRP is currently trading at $0.587, which is at a crucial level that could spark a massive rally for the altcoin. After rising 15% since early September, the price is testing the weekly 200 moving average (MA) at $0.609 as resistance, a level that has kept XRP low since April. Breaking this barrier is essential for bulls looking to extend the rally.
XRP has regained the weekly 200 exponential moving average (EMA) at $0.52, a strong demand zone since early July. This level will be crucial to keep the price stable if a correction occurs.
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For XRP to continue rising, the price must break the $0.60 level and regain the 1W 200 MA as support. A clear break above these levels would indicate the potential for a bigger rally and a shift in market sentiment. However, if stock prices don’t close above current levels, it could lead to more sideways consolidation or even a deeper pullback. In that scenario, XRP could retest the weekly 200 EMA at $0.52, which could act as a critical support level.
Featured image of Dall-E, chart from TradingView
