- The value of XRP has surged nearly 4% in the last 24 hours.
- Most indicators and market indicators looked optimistic.
Over the past few weeks, Ripple (XRP) has witnessed several corrections with its price finding important support.
However, as the market strengthens, it is more likely that XRP will recover its past losses. In fact, a bull rally may have begun.
XRP broke above the resistance level.
FLASH, a well-known cryptocurrency analyst, recently posted the following: Twitter Highlighting XRP’s performance over the past few months.
According to the tweet, the XRP daily chart displayed two descending wedge patterns that the token successfully broke through.
The situation for the token became disastrous when its price plummeted last April. However, if the price of XRP breaks above the resistance level of $0.51, the situation may turn in favor of the token.
The good news is that the token has surpassed the level, with the price rising by almost 4% in the last 24 hours.
According to CoinMarketCapAt the time of this writing, XRP was trading at $0.5347, with a market capitalization of over $29.4 billion.
AMBCrypto then analyzed Santiment’s data to determine whether the upward trend was the result of bullish market conditions or whether indicators supported it.
We have noticed high buying pressure on XRP as its exchange outflows have increased sharply over the past week.
The fact that investors are buying the token is further evidenced by the dwindling supply on exchanges. Sentiment towards the token has also become optimistic, as evidenced by the rise in Weighted Sentiment.
However, the token’s NVT rate surged on April 21st. A rising indicator means the asset is overvalued, which could end the token’s ongoing bull rally.
Source: Santiment
XRP: Will the Bull Market Continue?
Since some indicators looked bearish, AMBCrypto analyzed the token’s daily chart to better understand the likelihood of the bullish rally continuing.
According to our analysis, XRP’s MACD has shown potential for a bullish crossover.
The Relative Strength Index (RSI) was on the rise and heading towards the neutral line, suggesting continued price rises.
However, the Money Flow Index (MFI) showed that this was not the case, with a slight decline.
Source: TradingView
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If we consider a utopian scenario where XRP continues its upward rally, XRP will be able to recover its losses. The first target for the token should be a rise above the $0.54 resistance level.
Afterwards, investors can witness the token price reaching $0.57. If the token successfully breaks above that level, it could regain $0.6 in the coming weeks.