XRP Poised for Potential 20% Rally: Bullish Signals Emerge
XRP (XRP) is showing indications of a possible short-term recovery, with technical signals suggesting a potential 20% price increase by the end of August.
Key Indicators Suggest Bullish Reversal for XRP
- Classic technical patterns are indicating bullish reversal signals on XRP's charts.
- The $2.80–$2.95 range is a critical support zone, considered a “make-or-break” level by analysts.
Fading Sell-Pressure Indicated by Bullish Divergence
A bullish divergence is visible on XRP’s four-hour chart, often signaling a trend reversal. XRP's price has been forming lower lows, while the relative strength index (RSI) shows higher lows. This divergence indicates weakening selling pressure.
Another bullish signal comes from XRP’s daily chart, displaying a Dragonfly Doji candlestick pattern. This pattern, characterized by a long lower wick and minimal upper shadow, suggests strong buyer intervention after initial selling.
XRP previously experienced a 65% bounce following a similar Doji candlestick formation in April.
Analyst Cryptoes suggests that XRP could maintain its bullish momentum if it stays above the $2.80-$2.95 support range, which is considered a critical level.
Falling Wedge Pattern Indicates Potential Breakout
XRP’s four-hour chart shows a falling wedge pattern, a bullish reversal setup that could lead to a significant upward movement.
The XRP/USD pair rebounded from the wedge’s lower boundary near the 200-4H exponential moving average (200-4H EMA), showing strong support.
If the price breaks above the wedge’s upper trendline, a 20% rally towards the $3.60–$3.65 range is possible, aligning with the 0.236 Fib line around $3.07.
Disclaimer: This analysis is not financial advice. Trading and investment involve risk; conduct thorough research before making decisions.
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