Yerevan (CoinChapter.com) – XRP, the native token of Ripple Labs was going strong, trading at $1.27 in the Frankfurt session Thursday. Its bullish bias mirrors the overall expansion of the crypto market.
Crypto On The Rise
The cryptocurrency market is expanding, thanks to the wide mainstream adoption of coins such as Bitcoin (BTC) and Ethereum (ETH). More institutional and commercial investors chose to secure their assets in cryptocurrencies, including giants like JPMorgan and Citi Bank that started offering Bitcoin as an investment opportunity for their wealthy clients.
The total market cap has reached $2.163 trillion. XRP, like other altcoins (coins other than BTC), correlates with the overall climate on the crypto market.
Bitcoin and Ethereum, as the main cryptocurrencies influencing the market, maintained a bullish trend, with temporary setbacks. BTC traded at 49,350 against the USD, while ETH was $3,710 in the London session Thursday, after spiking to $4,380 on Wednesday. The second-largest cryptocurrency traded well above its 20-day Exponential Moving Average (EMA-20), a strong bullish indicator.
Along with the overall rise in the cryptocurrency market, there are some technical indicators to suggest the upcoming bullish break in XRP price.
Technical Setup Behind The XRP Bull
Ripple’s token was trading within a setup called the Symmetrical Triangle. It consists of a resistance line preventing sharp breakouts and a rebound line, which provides additional support for XRP, and hinders breakdowns. Both those lines have a similar slope. A sharp bullish or bearish break is expected ahead of the convergence between the two trendlines.
The Symmetrical Triangle formation is considered bullish if the trend preceding the pattern was also bullish. For XRP, the setup has been initiated following a 100 percent rise in value in mid-April. If XRP remains within the pattern, the upcoming rise will likely be equal to the initial ascend at the beginning of the formation. It may hit a $2.40 price target in early June, as shown on the chart below.
The 50-day Moving Average indicator (red line on the chart above) will likely provide additional support to the token, and the price will possibly pick up once it reaches the MA-50 line in the upcoming sessions.
XRP price was also influenced by the lawsuit currently in progression. The Securities and Exchange Commission filed the lawsuit against Ripple back in Dec 2020. The law enforcement agency accused the blockchain startup of selling $1.3 billion worth of XRP illegally. However, many XRP traders see a positive outcome for Ripple ahead as the court proceedings go on.
Given the overall expansion of the crypto market and the technical setup the token was trading in, an upcoming bullish break is possible for XRP in early June.