Ripple (XRP) hit a new yearly high on March 29 and is likely to continue rising for the foreseeable future.
XRP price broke the descending resistance line on March 21, forming a large bullish engulfing candle. After a brief decline, the price continued to rise and reached a new yearly high of $0,585 on March 29.
A break above this line also combines with a break above 50 on the RSI, adding to its validity.
Currently, Ripple price is closing above the $0.535 resistance level, which is likely to succeed unless there is a sharp decline in the next 24 hours. If successful, this area is expected to provide support and the rise will continue. However, if the cryptocurrency closes below this area on the daily time frame, a drop to $0.43 is possible.
XRP/USDT daily chart | Source: TradingView
XRP breaks key resistance?
XRP price has surged higher in March and is creating its fourth consecutive bullish candle. During this period, it broke above the long-term descending resistance line. Currently, the price is trading within the long-term resistance zone of $0.565. This is an important area as prices have not traded above it since May 2022 when it first fell below it.
Therefore, reclaiming this area would be a very important development and could lead to a move up to the next resistance at $0.925, which is 66% higher than the current price. Upside momentum is supported by the weekly RSI, which has surpassed 50 (green symbols).
There was some good news about Ripple last week. On March 21, Messari founder Ryan Selkis said that the lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) was an overreach by the SEC, and he hoped that it would be resolved positively, which would be extremely beneficial to Ripple Labs.
Therefore, a close above $0.565 could be the catalyst for an upward move towards the $0.925 resistance area. However, if the price is rejected by the $0.565 area, it could drop to the previous support at $0.430.
XRP/USDT Weekly Chart | Source: TradingView
In conclusion, a break above $0.565 could trigger another rally towards $0.925. However, a rejection could catalyze a drop to $0.430.
You can see the token price here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do their research carefully before making a decision. We are not responsible for your investment decisions.
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