XRP Price Prediction: The XRP price struggling to sustain above $0.55 could result in a fake breakout scenario
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XRP Price Prediction: As the crypto market navigates through its recovery phase, the XRP price recently broke through a key resistance at $0.55, signaling the potential for further bullish momentum. However, with Bitcoin hitting a ceiling at $35,000, a wave of selling pressure is affecting altcoins, including XRP, putting its recent gains at risk. Should investors worry?
Fake Breakout May Intensify Supply Pressure
- The XRP price breakdown below $0.5 would create a bull trap scenario to accelerate selling pressure.
- The daily EMAs gathered around $0.52 create strong support.
- The intraday trading volume in the XRP is $1.06 Billion, indicating a 28% loss
Since mid-October, the XRP price has been on a strong recovery path, rallying from $0.47 to a current trading price of $0.5525—a 17% increase. This rally has been backed by robust trading volume and an overall bullish sentiment in the market, suggesting the recovery is more than just a short-term surge.
On October 24, the coin price successfully broke the $0.55 resistance level, a barrier that had thwarted buyers for over two months. While this breakout was supposed to catalyze further bullish activity, a sudden influx of selling pressure has prevented XRP from breaching $0.56.
Consequently, the asset has been trading sideways above the recently breached $0.55 level for the past three days. Although breakouts are generally expected to yield quick results, this lateral movement may signify a weakening in buyers’ commitment.
A drop below this newfound support could quickly trigger a 5% decline to the psychological support level of $0.5
Is XRP Heading to $0.6?
On a positive note, the XRP price candles of the past three days have displayed long downside wicks, indicating buyers are defending the newly established support level. Should this support hold, the next target for this altcoin could be $0.6, presenting a potential gain of 8.5%.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.