XRP’s Breakout: What’s Holding It Back From New All-Time Highs?

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Ripple (XRP) has forcefully burst out of a prolonged consolidation phase known as a ‘wedge’, which is typically seen over several years. This breakout strongly suggests an upward trend and has propelled it to reach its highest ever value on record.

This increase strongly emphasizes the control buyers have over the market, suggesting there may be more growth moving forward.

XRP Analysis

By Shayan

The Weekly Chart

Over a weekly period, XRP displayed significant power by surpassing a crucial resistance area, which included the upper limit of a long-standing wedge pattern and an earlier notable high price point of $2. This bullish breakout was driven by the 100-day and 200-day moving averages, both at $0.6, signifying robust buying activity.

Currently, the value of this asset has hit its all-time high (ATH) at $3.4. The Relative Strength Index (RSI) is indicating that it’s overbought, which might lead to a brief correction or consolidation. However, the persistent buying activity hints at the potential continuation of the upward trend and reaching even higher all-time highs in the future.

The 4-Hour Chart

On the 4-hour chart, Ripple’s bullish trend is noticeable. After breaching a temporary sideways wedge formation at around $2.5, the asset has soared, approaching its all-time high (ATH). Yet, it faces resistance in the $3.3-$3.4 area, where there is a high concentration of selling pressure.

While a temporary rejection and market consolidation may occur, the strong bullish momentum suggests a potential breakout above this resistance, possibly setting new ATHs. Nevertheless, heightened volatility should be anticipated in the near term.

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2025-01-20 16:58