XRP shows signs of potential recovery after bouncing off a crucial support level within an ascending price channel. The recent upward movement could signal the beginning of a much-needed bullish trend. XRP touched the support line of this ascending channel at $0.52, suggesting that the cryptocurrency is regaining strength after consolidation.
Source: XRP/USDT Chart by TradingView
The ascending channel has been in formation since June, and each time, XRP has bounced back to higher high territory, showing optimism in the market. This pattern indicates constant buying pressure and accumulation each time the price forms a lower low, which may indicate an up movement. Nevertheless, this is an encouraging sign that XRP is still trading below crucial resistance levels, including the 50, 100, and 200 EMAs.
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XRP Poised to Retest Higher Resistance Levels
If XRP stays within the ascending channel and gains momentum, it could regain the $0.55 price level. This would set the stage for a potential resistance test around $0.60 and beyond. On the flip side, if XRP breaks below the current support line, it risks revisiting lower price levels, potentially dropping to $0.50.
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The best that XRP can do is remain on an upward trajectory and keep drawing buyers and a positive market view. Some of the current price fluctuations depict a turnaround at some points, which may help in the attempt to overcome the key resistance levels, though this is only possible if the buying pressure remains sustained.
In the coming days, the performance of XRP will be closely watched, especially as it approaches significant price points within the ascending channel. Whether it will sustain it will greatly depend on the capability of the coin to overcome the resistance and continue attracting investors.
Also Read: Coincheck Lists XRP Alongside Five Other Cryptocurrencies After Ripple’s Legal Win
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.