The XRP price is preparing once again for an explosive move toward the $3 mark. Aiming to break out from its consolidation phase, XRP’s recent price action suggests that a significant rally could be on the horizon. The analyst who projected this bullish trend remains broadly optimistic about XRP’s future outlook. However, he has also issued a word of caution that a false breakout followed by a price downturn remains a possibility.
XRP Price Gears Up For Moonshot Toward $3
In a detailed analysis of the 1-hour chart, crypto analyst ArShevelev on TradingView disclosed that the XRP price has been forming a series of tight consolidation patterns. The triangular formations highlighted on the price chart indicate that the asset has been moving sideways, a sign of indecision before a potential breakout.
As XRP looks poised to break free from its current consolidation pattern, ArShevelev predicts a possible surge to the $3 mark, representing a substantial 37% increase from the current market valuation. At present, the XRP price hovers around $2.19, having recently bounced off a critical support zone near $2.05. A significant level of interest is focused on this $2.05 support zone, deemed crucial for maintaining a bullish trend.
Moving forward, the TradingView chart indicates an overarching bullish trend with subsequent price action respecting XRP’s rising support line. The formation of a new consolidation triangle suggests that XRP could break upward from this pattern, initially targeting a price level of $2.36.
A captivating “highway to moon” arrow illustrated on the price chart further supports the bullish sentiment, indicating a successful breakout that could propel the price toward $2.6 and perhaps even ignite a broader rally towards the $3 mark. In his analysis, ArShevelev emphasized the significance of a previous support zone at $2.21, where buying activity first picked up, marking it as a vital holding area for XRP.
Bullish Setup For The Altcoin: Breakout Or Fakeout?
While XRP’s technical setup shows promise for a breakout, ArShevelev advises caution as the cryptocurrency market is notoriously unpredictable. The inherent volatility of cryptocurrencies means that failed breakouts are a common occurrence, particularly when the price languishes just below resistance levels for an extended period.
If XRP struggles to convincingly break above the $2.29 resistance level, the analyst forecasts a sharp decline towards the $2.21 support zone. Further retracement in this region could lead to an even more significant price drop to critical support levels, possibly near $2.05. Such a potential price decline is referred to as a “fakeout,” where XRP appears to be gearing up for a rally but instead initiates a sharp reversal.
Consequently, while the technical indicators lean favorably towards an upward breakout for XRP, questions linger regarding whether this could indeed lead to new highs or if it will be met with a fakeout instead.
