As someone once said about addressing volatile volatility in the cryptocurrency market: just expand the scope of business. This actually works, at least for the third largest cryptocurrency available, Ripple (XRP).
Thus, as it became known, observing the interaction between the price of this popular cryptocurrency and last week’s Bollinger Bands indicators ended the week on an uptrend for Ripple, as the seven-day candlestick closed just above the middle range of the index, which is also a 23-day moving average.
Holding Ripple above this important curve at the close of the week shows an upside tide for this cryptocurrency, opening the door to the possibility of its rise to USD$3.477 – the upper range of the Bollinger Bands indicators.
If Ripple does indeed rise at this level, it will break its price record and hit an all-time high, rewriting the previous record set in January. From the current price point, this represents a 46.82% increase. Alternative: Whether it happens or not, here’s the surprise. The alternative scenario is XRP rollback of its 23-day moving average on the weekly timeframe, which is only 2% apart, then last week’s performance would be nothing but a false breakout. In this way, the XRP target will move from the upper band to the lower band of the lower one, which currently runs at $1.08, down 53% from the current price point. It’s not fun.
Going forward, there seems to be cautious optimism about XRP. But if the price drops below it, the risk of a crash of 50% will rise significantly. You might say it’s a crucial moment. Because when prices approach major moving averages like this, it’s not just traders; it’s also algorithms, big capital, and market makers – all of them ready.
Ripple Shines: Strong Support and Growing Bullish Momentum
The bull trajectory is on the right track The bull market support range, often used in technical analysis, consists of the 21-week exponential moving average (EMA) and the 20-week simple moving average (SMA).).
When the price of an asset remains above this range, it indicates a bullish continuation. The recent Ripple move above this support indicates strong buying momentum and is in line with broader market expectations for a continued uptrend.
The chart published by Steve Ez Crypto reveals a clear XRP price structure regarding the support range ahead of a significant bullish move. The area marked white in the image indicates the retracement point, indicating that buyers have stepped in to maintain the trend. Historically, when assets maintain support above this range, they tend to experience sustainable price increases.
This technical setup is also in line with recent market sentiment. XRP has shown resilience amid volatility, while maintaining its price structure on an upward trajectory. A sharp breakout from the support area in the chart confirms that market participants view this area as a key buying opportunity.
Key factors that support XRP growth
Other than technical indicators, fundamental developments also shape the performance of the XRP market. A recent report from Times Tabloid highlighted former US President Donald Trump’s disclosure of cryptocurrency reserves, which included XRP, Solana and Cardano.
This announcement has fueled speculation about institutional and government interest in digital assets, which could increase investor confidence in XRP’s long-term prospects.
The regulatory landscape surrounding XRP has also improved, with increased clarity following key legal proceedings. Market participants have closely followed developments regarding the SEC case against Ripple, and any favorable outcomes could further promote XRP adoption and price action.
Market Overview and Price Forecasts
The US government has revealed plans to create a cryptocurrency reserve, with Ripple set to be a key component. This triggered an immediate bullish reaction, pushing it to multi-month highs.
After the announcement, Ripple saw a rapid price increase, jumping from $2.00 to over $2.93 in a single trading session before seeing some decline.
This increase means that it saw a 29% increase in the last trading session. The 12-hour price chart reflects this massive volatility, showing increased buying pressure and increasing volume.
With XRP holding support above the bull market support range, the probability of continued bullish momentum remains high. The breakout indicated in the chart of Steph Is Crypto suggests that XRP may enter a parabolic phase, similar to previous bull market cycles. If market conditions remain favorable, prices are expected to rise further.
At the time of writing, XRP is trading at $2.7, representing a 30% increase over the past 24 hours. Bullish factors bring XRP closer to breaking out the resistance at $2.95. If this level is broken, the XRP could rise to $3.00, paving the way for further gains.
The regulatory landscape surrounding XRP has also improved, with increased clarity following key legal proceedings. Market participants have closely followed developments regarding the SEC case against Ripple, and any favorable outcomes could further promote XRP adoption and price action.
If the price continues to break through resistance, XRP could test its all-time high (ATH) at $3.40. Breaking this level will allow a new ATH level to be set, indicating further altcoin growth. Such a development could attract more investors and possibly lead to new records for XRP.
