Over the past month and a half, the XRP price has been moving within a symmetrical triangle, but has repeatedly failed to overcome a key resistance barrier.
Now that the token is showing signs of breaking out of this consolidation pattern, traders are increasingly optimistic that a significant rally is possible. This breakout could pave the way for XRP to reach higher price levels, potentially marking a new chapter of bullish momentum for the altcoin.
XRP enthusiasts vote for rally
XRP traders are increasingly optimistic about a potential rally, as evidenced by the positive funding rate. The current streak of positive financing rates is the longest in seven weeks. A positive funding rate usually signals that long contracts are dominating short contracts, reflecting strong market sentiment in favor of rising prices.
This trend shows that traders are betting on XRP’s growth, with many optimistic about the token’s chances of growth. If bullish sentiment continues, it could fuel a sustained rally. This will further strengthen XRP’s price action as more investors enter the market.
Read More: XRP ETF Explained: What It Is and How It Works
XRP’s broader momentum is also showing positive signs. The Chaikin Money Flow (CMF) indicator, which tracks the flow of capital in and out of an asset, noted a sharp rise. This rise signals that investors are pouring money into XRP, reflecting confidence in the asset’s growth potential.
A rise in CMF usually indicates increased buying pressure, which can be a precursor to higher price levels. As investors actively invest in XRP, the market may continue to rise in the short term. This will support a potential breakout and subsequent rally.
XRP Price Prediction: A Key Barrier Awaits
XRP is currently testing the upper trendline of the symmetrical triangle pattern as support, suggesting a breakout may be around the corner. If a breakout occurs, XRP could rise by 29%, pushing the price towards $0.76.
However, to confirm this bullish result, XRP must first turn the $0.64 resistance level into a lower support level. This step will strengthen the upward trajectory and create the basis for further successes.
Read more: Ripple (XRP) price forecast for 2024/2025/2030.
If the breakout attempt fails, as has happened in the past, XRP could face a potential drawdown of $0.56. Given that this level has served as strong support in the past, the altcoin could consolidate above it. This will ultimately invalidate the bullish thesis if a breakout does not occur.
