People are paying attention to XRP again. After breaking through a key resistance level at $2.60, the token is sending out strong bullish signals. This is because of patterns in the charts, whales moving around, and a new ETF that was approved.
What is making XRP break out?
Traders are paying close attention, and one analyst has the guts to say that XRP could go up to $38 in the long run.
XRP has been stuck at the $2.6 resistance level since March. It was broken not long ago. This breakout happened at the same time as Bitcoin’s high trading volume and entry into new territory. On Monday, July 14, the altcoin couldn’t turn the $3 psychological resistance level into support right away. Whale accumulation is going up, which means that big holders think prices will go up even more.
The U.S. Securities and Exchange Commission (SEC) approved the listing of the ProShares Ultra XRP ETF, which made traders more hopeful. At the time of this regulatory change, the XRP was still above the previous resistance zone
On July 15, technical analyst Gert van Lagen showed a 7-year XRP chart with an ascending triangle and a double bottom. Van Lagen says that in the past, these patterns have come before big bullish breakouts.
What are traders looking at next?
Van Lagen’s analysis suggests that the price could rise to $38, which is 1,190% more than the current level of $2.84. The forecast is based on long-term chart patterns and how the market has broken out in the past.
The moving averages on the 1-day chart are well below the current market price, which shows that the market is moving strongly in a bullish direction. This setup was last seen during the November rally, when moving averages couldn’t keep up with the price of XRP for almost two months.
This is backed up by the fact that the Accumulation/Distribution (A/D) indicator has been going up since March.
The fair value gap at the $2.6 zone, which is near previous range highs, could be a good price target during any retracement. The 2-week liquidation heatmap shows a thick pocket of liquidity that suggests a short-term price target of $3.
XRP has a good chance of going up to $3.04 to $3.08 based on where it is now. If it breaks $3.1, the chances of it going up even more would go up a lot. On the other hand, buyers should expect a drop to $2.6 because the $2.61–$2.66 area is a magnetic zone that is about the same size as the one around $3.
Is it possible for XRP to really reach $38?
If the price of a coin reached $38, it would be worth about $2.3 trillion, which is more than Bitcoin’s current market cap of $1.2 trillion. The market cap right now is $173.9 billion. When there is steady volume and a positive attitude, the ascending triangle pattern, which is often seen as a continuation pattern, often leads to price increases.
Even though XRP is above $2.80 and trading volume has gone up recently, most users are doubtful and think it will stay below $10 in this cycle.
Also read: Texas, Utah, and Arizona Lead the Charge in Blockchain Innovation
