- XRP consolidated near its resistance, with analysts predicting a breakout that could trigger a major bull run.
- XRP liquidation data showed growing short pressure, fueling bullish momentum and increased market interest.
Ripple [XRP] has shown renewed strength over the past week, registering a 5% gain despite broader challenges in the crypto market.
Analysts are closely watching for a potential breakout that could potentially mirror 2017’s huge rally.
With XRP trading on $0.599 At the time of writing and with a circulating supply of 56 billion tokens, the asset’s market capitalization was $33.64 billion at the time of writing.
The coming weeks could be crucial, as technical patterns indicate that XRP is about to make a major move.
Potential breakout after years of consolidation
Javon Marks, a crypto analyst, observed that the price of XRP has been hovering around a critical point, indicating a possible breakout from a long-standing resistance pattern.
He noted that XRP has been consolidating for more than 2,424 days, dating back to the post-2017 bull run when XRP soared to record highs.
According to Javon, a 3-4% increase could break this trend and signal the start of a new rally.
Additionally, on August 6, Javon Marks predicted,
“Price action and RSI patterns indicate a possible bullish breakout.”
He emphasized that the current technical setup reflects patterns seen in previous bull markets, which could pave the way for a strong price increase.
If successful, this breakout could open the door to a target range of $15 to $18, representing a 2,100% upside from current levels.
Source:
Technical indicators point to bullish momentum
Several technical indicators supported the possibility of an impending breakout. The Relative Strength Index (RSI) for XRP stood at 56.40 at the time of writing, indicating a mild bullish trend without being overbought.
This suggested that there was still room for price growth without any immediate risk of a market correction.
Additionally, the 100 and 200 Exponential Moving Averages (EMAs) provided solid support in the $0.58 to $0.56 range, which could help XRP maintain its upward trajectory.
Source: TradingView
The Awesome Oscillator (AO) also showed positive momentum, with the green bars showing a weak but growing bullish trend.
Although the AO is still close to the zero line, an increase in the green bars could confirm the start of a stronger upward movement.
Traders are closely watching these indicators to assess whether XRP will continue its current trajectory.
Liquidation data points to strong short-term pressure
XRP’s recent price action has led to short liquidations, further supporting the case for a possible breakout.
Data from Coinglass showed which liquidated $63.91K in short positions on August 23, compared to only $6.15K in long liquidations.
This imbalance suggested that many traders betting on XRP have been caught off guard by the recent upward move, which may have contributed to further upward price pressure.
Source: Coinglass
Read Ripple’s [XRP] Price forecast 2024 – 2025
This liquidation data, combined with the growing open interest in XRP, points to increased trading activity and heightened expectations for a possible bullish breakout.
Open interest rose 2.55% to reach $698.52 million, while option volume rose 200.30%. This spike in trading volume highlights the increased focus on XRP as it approaches a crucial price level.
