After a prolonged period of consolidation lasting over a year, Ripple’s native token, XRP, has emerged from a bullish price action pattern, signaling potential for substantial upward momentum. This pivotal breakout aligns intriguingly with recent developments, as Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), hinted at the possibility of his resignation.
XRP Technical Analysis and Upcoming Levels
In-depth technical analysis reveals a bullish outlook for XRP, as the token has broken out from an ascending triangle pattern on the weekly chart. This movement was confirmed by a daily candle closing above the critical neckline at the $0.75 level. This breakout marks a shift in market sentiment from a corrective phase to a noticeable uptrend.
According to data from Trading View, the technical analysis, coupled with historical price trends, suggests that XRP is on track for a 75% upward rally, potentially reaching the $1.35 level. Before embarking on this substantial rally, XRP may face formidable resistance around the $0.90 level, which historically has been a challenging barrier, often creating selling pressure.
However, the current market sentiment, fueled by speculation regarding Gensler’s possible resignation, may provide XRP the impetus needed to overcome this resistance. Currently, XRP is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, further reinforcing its upward trajectory.
Bullish On-Chain Metrics
On-chain metrics add further weight to the optimistic outlook for XRP. As reported by Coinglass, an on-chain analytics firm, the Long/Short ratio for XRP has reached 1.18, marking the highest level since August 2024. This significant surge in the ratio suggests robust bullish sentiment among traders.
Presently, 54% of leading traders maintain long positions in XRP, while 46% hold short positions. Additionally, the open interest in XRP has witnessed a dramatic increase, with a 24% rise in the past 24 hours and a 12% increase over the last four hours, reflecting heightened trader engagement.
Current Price Momentum
As of the latest market update, XRP is trading close to the $0.80 mark, exhibiting a remarkable price increase of over 18% within the past 24 hours. This period also saw a 35% surge in trading volume, indicating increased participation from both traders and investors, spurred by the bullish breakout.
Overall, the combination of technical analysis, on-chain metrics, and current market conditions suggests that XRP could be on the cusp of significant growth, making it a token to watch closely in the coming weeks.
