After a sharp break below the $2 support level last week that caught investors by surprise, the XRP price is back up again and looking to break out into another surge. This is highlighted by an analyst on the TradingView website who explained that XRP is making major strides after the recovery. This includes the formation of bullish candles that show momentum is rising, possibly to help prop up the recovery.
Why The XRP Price Has Turned Bullish
A number of bullish developments have been highlighted by the crypto analyst that suggests that the XRP price continues to be bullish from here. One of these is the classic cup and handle style formation that the analyst pointed out has been forming on the larger timeframes. Interestingly, this would not be the first time that the altcoin has done this and history shows that this usually happens before a surge.
According to the analyst, the previous time that the XRP price has shown something like this, the result had been a slow grind up, and then a quick move up to the next retest. At the current level, it means that if this formation plays out like last time, then the altcoin could be looking to surge and retest the $2.33 area as the next major resistance level.
With a break out of this resistance, then the XRP price is expected to test the next major point of contention, which is at $3.02. To do this, the analyst explains that it would have to break out with adequate volume, which could trigger a fast push from $2.33 to $2.59, before heading for $3.02. Then, they explain that bulls could step in once the price starts to hit the upper range.
Additionally, the higher timeframe structures have also been showing a gradual lift-off. This rise in the price, though slow, but steady, is showing a possibility of rising toward the $3.40 level. This puts it incredibly close to the $3.8 all-time high that has yet to be broken in the last seven years.
There is still a bearish scenario for XRP in the case where the $2 support fails again. A crash from here could send the price spiraling toward $1.5 again. However, the crypto analyst highlights that the current structure is clean. Furthermore, as momentum picks up and support holds, with no disruptions from macro sentiment, the crypto analyst believes “XRP is showing all the signs of a classic bullish retest setup.”
Featured image from Dall.E, chart from TradingView.com