- XRP Could Break 7-Year Resistance With Potential 500% Surge, Analysts Suggest Bullish Breakout
- Growing interest in XRP derivatives and bullish chart patterns suggest potential for major price movement.
XRP The current price movement has caught the attention of market analysts as the crypto is showing signs of a potential bullish breakout.
Crypto analyst Javon Marks has note that the XRP chart pattern reveals multiple hidden bullish divergences, hinting at a possible 500% price increase.
As XRP is currently consolidating within a large symmetrical triangle, analysts are wondering if the token could break its 7-year resistance and reach $3.313 in the near term.
Historical uptrends indicate strong potential
XRP’s chart history reveals two major bullish breakouts from symmetrical triangles. The first occurred in 2017, resulting in a 1,220% increase, and the second in 2020, which saw the price increase by 2,436%.
At the same time, these previous breakouts suggest that XRP has a history of substantial price movements when similar chart patterns emerge. XRP was trading within another symmetrical triangle at press time, and many believe it could replicate past performance.
Source: X
Crypto experts point out that hidden bullish divergences often lead to strong upward moves, and multiple confirmations on the XRP chart indicate the potential for another big rally.
This could cause XRP to break its long-standing resistance level, which has been in place for nearly seven years.
Technical indicators show mixed signals
At the time of writing, the price of XRP was $0.5371with a slight increase of 0.70% in the last 24 hours. However, over the last week, the price has decreased by 2.85%.
Bollinger Bands, a popular volatility indicator, were tightening around the current price, suggesting lower volatility in the near term.
Additionally, the price was hovering near the middle band, which represents the 20-day moving average, indicating a neutral to slightly bearish trend.
The Moving Average Convergence Divergence (MACD) indicator, another widely used tool to predict price direction, is showing a bearish signal with the MACD line below the signal line.
However, the histogram is starting to show signs of reducing negative momentum, which could hint at a potential slowdown in the downtrend.
Increased interest in XRP derivatives
Recent Coin glass Data shows growing interest in XRP derivatives. Trading volume increased by 14.55% to $691.74 million, and open interest increased by 1.66% to $597.42 million.
Options trading, in particular, saw a surge, with volume up 135.24% and options open interest up 64.58%. This surge in derivatives activity suggests that traders are positioning themselves for potential price movements in the near future.
Source: Coinglass
The long/short ratio over the past 24 hours is close to neutral at 0.9893. However, on major exchanges like Binance and OKX, data reveals that traders are heavily tilted toward long positions.
Binance’s long/short ratio is at 2.9683, while OKX is at 2.27, showing a strong bias towards bullish expectations.
Additionally, XRP liquidation data over the past 24 hours shows that short positions were hit the hardest, with a total of $14.83K in liquidations compared to just $2.42K for long positions.
Source: Coinglass
Read Ripple (XRP) Price Prediction for 2024-25
This liquidation data is in line with the general market sentiment, where short traders have suffered larger losses, perhaps indicating a change in market direction.
With XRP’s history of explosive price movements and current chart patterns indicating hidden bullish signals, many traders are keeping a close eye on the token.
