Altcoin
XRP Price Nears Breakout Zone, Is a Rally To $5 on the Horizon?
XRP price is trading in an important area as analysts watch the $2.6 mark to decide the future of the altcoin. While analysts have indicated that crossing this level and further breaching the $2.77 mark would support the continuation of the upward movement. Currently, the resistance is found at $2.60, $2.85, and $5.85 in the long term while the support level is $2.33.
XRP Price Approaches Key Resistance Levels
Dark Defender has noted that XRP price is currently at the $2.60 level which is a key level that will determine the direction in the short term. A breakout above $2.77 will help signal a continuation of an up move, to higher prices. The analyst also notes that Ripple price is establishing higher lows and that implies that there is more buying pressure in the market.
Technical indicators, including the Relative Strength Index (RSI), also reflect bullish momentum. The RSI trendline has been creating higher lows, indicating an increasing demand for the asset. If XRP price manages to stay above the $2.60 resistance, the next target stands at $2.85, followed by a long-term projection of $5.85. However, if it fails to break through, support remains at $2.33.
Also, according to analyst Egrag Crypto, predicted that XRP price may reach $67 if higher levels will be broken. He stated that if the price closes above 3$ on the monthly chart, then pump signals of an upward trend would have been established fully.
However, the analyst also informed his followers that he expected XRP to pull back in the short-term, potentially testing $0.90 before shooting up once again.
Ripple Forms a Cup and Handle Pattern
More so, another analyst Thom Sieloff, identified a cup and handle formation in the daily timeframe. This pattern is widely considered a bullish continuation signal, often resulting in an upward price move. XRP price has been consolidating between $2.40 and $2.70, forming the handle portion of the pattern.
According to technical projections, the breakout point for this structure is expected around $2.68 to $2.70. Historically, this pattern leads to a 20-30% surge upon breakout. If XRP price follows this pattern, the potential price target could reach $3.36 before facing further resistance.
Traditionally, a stock or crypto (like $XRP) forming a cup and handle pattern may increase by 20-30% from the breakout point, based on the depth of the cup projected upward from the resistance level, potentially targeting around $3.36 (a ~25.37% increase from $2.68) in this case.…
— Thom Sieloff (@RealThomSieloff) February 21, 2025
Potential For an Altcoin Rally
Market sentiment indicates that a confirmed breakout in XRP price could trigger an altcoin rally. Several analysts suggest that if XRP manages to hold above resistance levels, it could set the stage for an uptrend. The formation of bullish structures, coupled with increasing demand, supports this outlook.
The possibility of an altcoin rally is further supported by growing institutional interest. Recent movements in the cryptocurrency market, including discussions around the MicroStrategy ETF, highlight increasing capital inflows into digital assets. XRP price action remains a key factor in determining whether this rally materializes.
Despite positive technical signals, regulatory concerns remain a factor in the broader market. The SEC continues to maintain regulatory oversight on digital assets, influencing investor sentiment. However, XRP price has demonstrated resilience, recovering from past regulatory challenges.
Nevertheless, the altcoin season is at risk if Ethereum fails to maintain the critical $2,600 support level, as highlighted by analysts. A drop below $2,425 could trigger further declines, delaying the anticipated altcoin rally.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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