The Ripple XRP price has reached a weekly close above the $0.55 horizontal resistance area.
During the increase, XRP also broke out from a nearly 100-day descending resistance trendline. Will the price continue increasing toward $1?
XRP Finally Closes Above Long-Term Resistance
The weekly technical analysis for XRP shows that the price has increased alongside an ascending support trendline since June. The price bounced at the trendline in March (green icon) and reached its yearly high of $0.94 in July.
During the increase, the XRP price broke out from the $0.55 horizontal resistance area. After falling below it in August, XRP began another upward movement and reclaimed the area last week.
Read More: Best Crypto Sign-Up Bonuses in 2023.
The XRP price weekly close of $0.56 was the first above this area since XRP fell below it in August.XRP/USDT Weekly Chart. Source: TradingView
The weekly Relative Strength Index (RSI) gives a bullish reading.
With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The RSI moved above 50 last week, a sign that the trend is turning bullish.
Click here for XRP price predictions.
What Do Analysts Say About the Increase?
Cryptocurrency analysts on X have a mostly bullish outlook on the future XRP movement. IonicXBT stated:
In a week’s time everyone will start talking about $XRP as price pumps. Chart looks ready. You heard it here first.
Crypto Assets Guy was even more specific when discussing the XRP price movement for the next year:
My REALISTIC price prediction for $XRP on January 1, 2024 is $2.50 What is yours?
Crypto Poseidon laid out a bearish scenario in which failure to close above $0.55 was considered a sign of weakness. However, since the XRP price closed above $0.55, the scenario can be considered invalid.XRP/USDT Daily Chart. Source: X
Earlier today, a whale transferred 50,000,000 XRP tokens from the Crypto.com exchange to a cold storage wallet. Such a movement is associated with supply shortages, which can then cause a price increase.
XRP Price Prediction: Can Price Reach $1?
The daily timeframe technical analysis gives a bullish reading, supporting the reclaim in the weekly timeframe.
Firstly, the price broke out from a descending resistance trendline on October 19. Before the breakout, the trendline had been in place for 98 days.
Secondly, the daily RSI gives a bullish reading. The RSI is increasing and is above 50. Additionally, the bullish divergence trendline (green) that preceded the entire upward movement is still intact.
If the increase continues, the next closest resistance area will be between $0.68-$0.74. The area is created by the 0.5-0.618 Fib retracement resistance level and is 25% above the current price.
The theory of Fibonacci retracement levels suggests that after a substantial price move in one direction, the price will partially retrace or return to a prior price level before continuing in its original direction.
The $0.68-$0.74 area is the final resistance before $1. So, an XRP price breakout above it can cause a 65% increase, taking the price to a new yearly high of $0.95.XRP/USDT Daily Chart. Source: TradingView
Despite this bullish XRP price prediction, a daily close below the minor support at $0.54 can trigger a 28% drop, taking the XRP price back to the long-term ascending support trendline at $0.41.
Read More: Everything You Need To Know About Ripple vs. SEC
For BeInCrypto’s latest crypto market analysis, click here.
The post Ripple (XRP) Price Reaches Weekly Close Above $0.55 – Is $1 the Next Target? appeared first on BeInCrypto.