XRP‘s struggle to achieve significant price movements, despite its high trading volume, continues to make it one of the biggest uncertainties in the cryptocurrency market. An ongoing lawsuit between the SEC and Ripple adds to the pressure, preventing XRP from reaching the critical $1 mark. Despite these challenges, a prominent analyst maintains a positive outlook for XRP’s potential rise.
Is XRP’s Decline Premature?
Analyst TradingShot posted an analysis on June 25, expressing optimism about XRP’s future. According to the analyst, XRP has been below its weekly moving average since April 8, 2023. Additionally, the cryptocurrency is at the base of a triangular structure, established after hitting its all-time high in January 2018.
The current chart formation is reminiscent of the pattern from December 2013, which saw a significant upward break in March 2017. This historical parallel suggests that XRP could experience a similar upward movement in the near future.
What Does the RSI Indicate?
Another critical factor highlighted by the analyst is the Relative Strength Index (RSI), which currently stands at 40. This level has historically been considered a long-term buying opportunity. A low RSI typically indicates a drop in the asset’s price, which some investors view as a chance to buy in at a lower price point.
Actionable Insights for Investors
XRP investors can make the following inferences:
- Monitor XRP’s movement relative to the weekly moving average for signs of a potential breakout.
- Consider the RSI level of 40 as a potential buying opportunity.
- Keep an eye on the triangular structure formation for any significant changes.
Currently, XRP is trading at $0.4762, following a 1% increase over the past 24 hours. The market volume has rebounded to $26.5 billion after experiencing a decline yesterday. If XRP breaks above the 1W MA200, it may start a parabolic rise towards the cycle peak. However, failing to break this resistance could signal a more substantial price drop, challenging the long-term holders.