XRP, like most crypto, is still reeling from a recent bear market that has caused it to fall more than 36% from its highs this year. Even with this downward streak, a possibly bullish setup has formed on the charts providing some hope to investors. As of today, July 2, the crypto currency is at $2.17. It currently sits at a critical crossroads that will determine its fate in the coming weeks and months. A fall under crucial support levels might see the index drop even lower. Staying persistently above $2 could be an early indicator that a bullish breakout is on its way.
Technical Analysis and Potential Bullish Signal
Ripple’s XRP would eventually fall to a low of $0.1156 in 2020. This year, it returned with a vengeance, blasting off to $3.4, propelled by almost 500% November and December growth last year.
The emergence of a cup-and-handle pattern, with its upper boundary at $1.9630, is a positive development. This pattern is one of the most reliable bullish continuation signals. Even more concerning, it indicates that the price is expected to increase even more.
Key Support and Resistance Levels
As of now, XRP has just moved under the first support level of the Andrews pitchfork tool. Additional weakness below this support could see a break under the psychological level of $1. Provided XRP remains above its critical support level of $2, a bullish breakout may soon occur. That makes for a powerful combination and an exciting opportunity for investors.
Invalidation of the prevailing bullish forecast would be if XRP drops under the 50% Fibonacci Retracement level at $1.7635. If it does break its all-time high of $3.4, that would signal even more price appreciation ahead. This would help get us closer to the psychological target of $5.
Ripple USD (RLUSD) Stablecoin Impact
Ripple USD (RLUSD) stablecoin on the market will eventually have a positive impact on XRP price. With a market capitalization over $450 million, RLUSD has emerged as a major stablecoin market player. This is positive news as it should instill increased confidence and investment in the Ripple ecosystem which should indirectly benefit XRP in the long run.
