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With its recent push past the 50-day Exponential Moving Average, a crucial technical indicator that traders frequently monitor for trend confirmation, XRP has displayed indications of a possible bullish reversal. Following this move, XRP is currently trading around the $2.42 level and is getting closer to a crucial resistance zone around $2.70, which is in line with the upper bound of the descending trendline that has been stifling price action since the local peak around $3.40.
The breakthrough of the 50 EMA is significant because it serves as a midterm sentiment indicator. Trading above this level for an extended period of time frequently indicates increasing bullish momentum. Furthermore, XRP is currently holding above the 26 EMA and getting close to the 100 EMA which, if cleared with conviction, could serve as powerful confirmation of an impending uptrend.
Technically speaking, since early March, XRP has continuously marked higher lows, indicating a gradual increase in buying pressure. Additionally, there has been a rise in volume over the previous sessions, and the current trading activity is marginally higher than the 20-day average. If volume keeps rising, the recent breakout will be confirmed, and XRP might move closer to the resistance level of $2.70.
Gamza KhanzadaevIf the descending trendline at $2.70 is broken by XRP; it may confirm a bullish reversal pattern and pave the way for a bigger breakout, which could send the asset back into a wider bull run. The downside is that this bullish setup could be invalidated and short-term selling pressure could return if it is unable to hold its position above the 50 EMA. Right now, XRP is at a point where things can change.
Alex DovbnyaAll eyes are now on the $2.70 resistance level, but bulls have newfound hope after the move above the 50 EMA. The catalyst that reignites bullish momentum on the altcoin market could be a successful break. As of right now, the price is still within a clear range, and bulls are gradually gaining ground.
Vladislav Sopov
Dan Burgin