Bulls May Need to Wait Longer for XRP Breakthrough
In November, the cryptocurrency broke the key support level of $0.39. With the support area breached, the same level was also positioned as a key resistance.
The XRP price also formed a range between $0.30 and $0.41, with the midpoint set at $0.36, which serves as both a resistance and support area.
XRP Bull Run Losing Steam?
In November, XRP attempted to break the $0.30 level for two consecutive weeks. However, the bulls have lost momentum, resulting in the price falling below the midpoint of the range. A few days later, the price further dropped to $0.34.
According to data from CoinMarketCap at the time of writing, the XRP price has dropped by 1.3%, trading at $0.3548.
The token’s technical indicators show signs of a sudden reversal in bearish momentum. The RSI has climbed above 50 and turned this level into a support, indicating a strong bullish trend may continue in the coming days.
Additionally, the Accumulation/Distribution (A/D) line has successfully broken the key resistance level from November, which is a crucial development.
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However, such developments may not confirm a further breakthrough of the $0.39 level. On the other hand, it suggests that a breakthrough is possible and could happen within the next few weeks.
Increased demand for XRP indicates bullish positions
The sudden increase in demand for cryptocurrencies suggests that bulls may have taken the lead. However, breaking the key resistance may take some time.
Apart from SEC issues, the challenge lies in breaking the steady resistance line since November 2021.
XRP has tested and failed to break this resistance area multiple times but is determined to test it again. Breaking the resistance area will certainly help propel XRP towards the next target of $1.
