XRP price signals bullish momentum, now at $2.51
XRP shift towards a bullish trend
Ripple (XRP) has broken out of its approximate horizontal trend channel in the medium to long term, signaling a shift towards a bullish trend.
The breakout indicates continued strong development, with no clear resistance levels in sight. The absence of resistance points to potential further price increases as the currency follows its upward trajectory.
Currently, XRP benefits from support at key trendline levels, offering potential buying opportunities in the event of a short-term pullback. Additional support is established at $1.57, corresponding to the 0.65 Fibonacci retracement level.
This level is expected to act as a significant safety net for investors if bearish sentiment temporarily takes hold.
XRP price dynamics (December 2023-December 2024). Source: TradingView.
Despite the overall bullish outlook, caution is warranted. The Relative Strength Index (RSI) is diverging negatively against the price, which may indicate a potential downward reaction. This divergence suggests that bullish momentum could be slowing, increasing the likelihood of a short-term correction.
The technical assessment for XRP remains positive in the medium to long term. The break above the horizontal channel, coupled with no visible resistance, positions XRP for further gains. However, traders should keep a close watch on support at $1.57 and monitor RSI divergence as an early warning of a possible retracement.
On November 29, blockchain tracker Whale Alert flagged two major XRP whale transactions totaling 139.39 million tokens. One of these transactions involved 104.39 million XRP, worth $167 million, being transferred to an unknown wallet.
