XRP Price Getting Ready For The Next Leg-Up, Why It Can Break Above $3.5

Price motion previously 24 hours has seen XRP break below the $3 mark again. XRP initially managed to cross above the $3 mark on January 15, a move that marked a notable milestone in trading above this level for the primary time in seven years. Nonetheless, this level has failed and the altcoin has fallen below it again previously trading day.

Nonetheless, XRP’s foray above the $3 mark again shows its potential to return above this level, especially after years of being labeled dead by some crypto analysts. Interestingly, an evaluation on the TradingView platform suggests that the cryptocurrency could also be preparing for one more significant breakout, not only to reclaim the $3 mark but in addition to exceed $3.5 very soon.

XRP Holds Regular In The Equilibrium Zone

Technical evaluation of the XRP price motion on the 3-hour candlestick chart shows that the cryptocurrency has managed to keep up a stable position inside an equilibrium zone despite the intense volatility witnessed amongst cryptocurrencies previously few days before and after Donald Trump’s inauguration.

In keeping with the evaluation, XRP is currently trading inside a wedge pattern, which has historically been a precursor to decisive price movements. Interestingly, this pattern has been developing since January 16, when the asset reached a peak of $3.38 before starting a corrective phase. The cryptocurrency has exhibited a progressively tightening range inside this range, which is a fragile balance between buying and selling pressures that might break out in either direction.

Price maintaining position inside an equilibrum zone | Source: Chart from Tradingview

Notably, the consolidation throughout the wedge pattern appears to be reaching its climax, and the analyst highlighted this as a key indicator of XRP’s readiness to embark on its next leg up. As such, the analyst predicted that the following move can be a bullish return above the $3 mark, with a specific goal at $3.5 before another correction.

Potential Risks: Bearish Divergence On The Weekly RSI

Although the outlook for XRP stays bullish, the technical evaluation also pointed to a possible bearish divergence forming on the weekly RSI. This divergence occurs when the value of an asset moves higher while the RSI indicates weakening momentum.

Although this presents a risk, the analyst expressed confidence that the present wedge pattern and its regular performance could outweigh this bearish signal. Its continued trading throughout the accumulation zone is one other encouraging factor. If a major decline were in the image, it likely would have occurred already. The proven fact that XRP has held firm on this zone suggests strong support from buyers, with selling pressure being effectively offset by regular buyer interest.

Should the altcoin achieve the projected $3.5 goal, it could mark an 18.5% increase from the present price and represent a breakout above its previous all-time high of $3.40. Nonetheless, this might be considered a short-term price goal. Long-term projections for XRP are way more ambitious, with targets starting from $7 to as high as $20.