- XRP formed a bullish pattern that was last seen in June 2022.
- The altcoin was targeting $0.72 at press time.
Ripple (XRP) price increased to $0.58 on January 8th. However, according to analyst Ali Martinez, this rise could be the start of a $1.10 rise. According to Martinez, XRP formed a bullish pattern that was last seen in June 2022.
He also added that if the rising parallel channel continues, XRP could reach $0.80 in the middle boundary, but could not reach the upper limit above $1.
From this perspective, the dominant pattern behind it is #XRP The price movement after June 2022 appears to be in an upward parallel channel.
If this pattern continues, $XRP It could head towards the middle or upper boundaries of the channel, which are currently at $0.80 and $1.10. pic.twitter.com/kCKHEFZQWe
— Ali (@ali_charts) January 8, 2024
$1 is possible, but it’s not the time yet.
Martinez’s comments may provide some relief to XRP holders. For a long time, cryptocurrency holders had hoped that the token could realize its much-talked-about potential. However, XRP has found it difficult to trade above the cent level.
The last time it came close to $1 was in 2023 when Ripple partially won the US SEC. Despite recent price predictions, XRP has failed to reach $0.6. At press time, AMBCrypto determined that the price had fallen to $0.56.
In terms of open interest (OI), its value fell to $485.19 million, according to Coinglass data. OI increases or decreases depending on net open positions.
Increasing OI means increasing positioning of market participants in terms of net balance. This also means that buyers are more aggressive than sellers.
Therefore, a decrease in OI means sellers are becoming more combative, which could push XPR towards $0.55 support.
Source: Coinglass
XRP is targeting $0.72 at launch.
On the XRP/USD daily chart, the 0.236 Fibonacci level was $0.55. This Fib level indicates a possible pullback point. Therefore, this position means that 0.236 is consistent with the OI indicator that a decline towards support is likely in the near term.
Looking at the Fib again, we see that the 3.618 level is at $1.06. This suggests that if XRP surpasses its December high of $0.69 at some point, it could rise to $0.72.
AMBCrypto also evaluated the exponential moving average (EMA). At press time, the 50 EMA (blue) has crossed above the 200 EMA (yellow), indicating that XRP’s trend may be bullish in the long term.
However, things look a bit bleak for cryptocurrencies in the short term. This is because the relative strength index (RSI) at the time of reporting was 39.07.
Source: TradingView
The RSI reading signaled weak buying momentum. So unless buyers come back in full, XRP may not test $0.58 again anytime soon.
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Regardless of the forecast, it is important to note that the value of XRP may depend on factors other than technical perspectives. Ripple is in the middle of a lawsuit with the US SEC, the outcome of which could affect its price.
However, with the idea that 2024 will be a bull market, it is likely that XRP will reach that value.