The technical chart of Ripple (XRP) suggests that the price is fast approaching an important resistance level. If we get a bullish breakout from this level, it will lead to a major bullish move in cryptocurrency.
According to analysts, there's a chance that Ripple (XRP) could add 20% to its value. However, there's also a chance that we get a sudden sell-off before the actual breakout happens. In this case, the Ripple (XRP) bulls could get trapped and even liquidated.
XRP has made several lower highs recently and is still stuck in a prolonged downtrend. If we combine the swing points with a trend line, we can see that the resistance level is declining. For now, Ripple has managed to produce a bullish candlestick (daily chart), but it is still too soon to pick the buy side.
Buyer Interest Still Remains In Ripple (XRP)
If we look at the XRP's price action as of late, it reveals that buyer interest is still alive and kicking. This becomes more apparent when we look at the 30, 50, and 100 EMA on the daily charts. And when we get a retest of these EMAs on the daily chart, it will be yet another good news for the buyers.
But the biggest challenge is still the declining trendline which has been around for several years. If the XRP bulls manage to pierce it and then retest it with good momentum, the chances of a 20% rally will become very high.
If this happens, then the Ripple (XRP) will move towards $0.493 and then towards $0.596 if the bullish pressure remains high.
However, there is also a chance that the XRP could face some serious selling pressure upon challenging the declining trend line. This could further push down the Ripple (XRP) and thus will delay the recovery.
Last but not least, we also need to account for the overall sentiment of the cryptocurrency market. This can also have a major effect on the Ripple (XRP) price in the near future.