Jaipur (CoinChapter.com) — Like all other cryptocurrencies, Ripple’s XRP, too, had to bear the brunt of the May 23 crash. Correction in prices caused XRP to drop to pre-pump levels in April’s first week. But it’s been 15 days with the token following a range-trading pattern. Now one analyst expects XRP to undergo a massive breakout rally.
Analyst Asserts XRP/USD Is Headed Towards $1.5
In the latest take on XRP’s price action, Serbian currency/FX analyst Zaks_ForexSignals1 put out a bullish stance on the token. The analyst asserted that the XRP/USD pair is ready for a rally to the $1.5 price level.
Zaks clearly panned out the Supply and Demand zones on the 4-hour chart of XRP/USD. Additionally, the Forex trader cum analyst also pointed out the price points, which provided strong conformations for an impending downtrend. In asset charting, downtrends refer to the probability/occurrence of the downfall in asset prices.
According to Zaks, these downtrend confirmations resulting from associated price spikes and the formation of head and shoulders patterns within the delineated supply and demand zones provide a strong upsurge bias for the XRP/USD pair. Also taken into consideration is the sideways trading trend that showed up after recovery from bearish depths.
For the uninitiated, a head and shoulders chart pattern is a technical indicator that consists of three peaks. These, in turn, provide a significantly clear picture of trend reversals in technical analyses.
What Do The Other Technical Indicators Say?
As per the daily XRP/USD chart, the bottoming trend in the RSI (Relative Strength Indicator) and MACD (Moving Average Convergence Divergence) indicators is clearly visible. In addition, MACD has printed a bullish crossover and plateaued RSI numbers to look primed for a rally.
The 20-day exponential moving average is hovering near the $1.02 price level, which serves as the short-term resistance. If the XRP/USD pair can rally up and tap the said price level, further runup will be strongly confirmed.
Ripple prices risk falling to the support at $0.72 (calculated from the 200-day simple moving average line) in the case of a sell-off.
And The fundamental Pointers?
Since the last year, Ripple has been at loggerheads with the US Securities and Exchange Commission (SEC). The lawsuit pertains to XRP confused status as security (or not). But the blockchain payments company has logged a significant victory in April, which saw the Ripple token price rally to $2.
Recently, Ripple filed a motion against the SEC. In it, the San Francisco-based firm urged the regulator to reveal its thought process behind considering XRP different than bitcoin/ether. Also, the company has requested to stall the case until the SEC provides the required clarification. If the standoff ends in favor of the issuing firm, bulls will unleash their might on XRP prices.