XRP Soars Nearly 5% in 24 Hours, Breaks $2.30 Mark Amid Growing Bullish Momentum
XRP has experienced a significant uptick in value over the past day, surging by almost 5% and surpassing the $2.30 mark as bullish sentiment continues to strengthen. This increase comes amidst widespread market optimism, despite the SEC postponing its decision on a number of XRP ETF applications.
Technical analysis reveals that XRP's Relative Strength Index (RSI) has been steadily climbing since March 10, edging closer to levels that typically indicate robust buying activity. This positive trend suggests that XRP might soon challenge crucial resistance points, potentially setting its sights on breaking above $3 for the first time since late January.
XRP's RSI has surged to 60.14 from a mere 27 just three days ago, showcasing a remarkable uptrend. A value above 70 on the RSI scale usually signifies overbought conditions and hints at a possible price correction, while a figure below 30 indicates oversold conditions that often precede a price rebound.
The recent surge past oversold levels indicates a significant shift in market sentiment, with buyers taking charge to drive prices upwards. With XRP's RSI currently at 60.14, it is fast approaching bullish territory but remains below the critical 70 threshold. Historically, breaching the 70 level has posed a challenge for XRP's momentum, serving as a resistance point.
If the RSI continues its upward trajectory and surpasses the 70 mark, it could signal exceptional bullish momentum, potentially leading to further price hikes. However, a stabilization or decline from this level might see XRP enter a consolidation phase or experience a temporary slowdown before resuming its upward movement.
Analyzing the Ichimoku Cloud chart for XRP, the recent break above the blue Tenkan-Sen (conversion line) suggests a short-term bullish shift in momentum. Moreover, trading above the red Kijun-Sen (baseline) further reinforces this optimistic trend. Although the red cloud (Kumo) ahead indicates a lingering bearish trend, breaking through its lower boundary and establishing support above it could sustain XRP's upward momentum.
While facing resistance at the cloud might challenge the current uptrend and trigger a potential pullback, surpassing the red cloud could signify a significant trend reversal, leading to stronger bullish momentum.
The upcoming candlestick closures will play a vital role in determining whether XRP can maintain its recovery or face renewed selling pressure.
Could XRP Surpass $3 in March?
Despite the prevailing bearish formation of XRP's EMA lines, a recent bullish momentum in short-term EMAs suggests a shift towards greater optimism. A possible crossover above the long-term EMAs, forming a golden cross, is typically associated with upward trend reversals.
Should this bullish crossover unfold, XRP might have the impetus to challenge key resistance levels at $2.64 and $2.74. Positive developments regarding the SEC and XRP ETFs could further fuel this optimistic trajectory.
Breaking through these resistance levels would bolster the bullish outlook, potentially propelling XRP towards $2.99 and beyond $3 for the first time since late January.
Nevertheless, if the current recovery loses steam and the bearish structure persists, maintaining the current price levels could prove challenging. A renewed downtrend might bring the critical support level at $2.21 into focus, with a potential decline towards $2.06 and the prospect of testing $1.90 in a deeper correction.