Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
A strong rally that brought XRP near its most crucial threshold in months — the psychological $3 mark — brought the cryptocurrency into the public eye. Recent sentiment has changed as a result of the breakout above the $2.50-$2.60 resistance, setting up XRP for what may turn out to be a pivotal move in the upcoming trading sessions.
In particular, the resistance just below $3 is important. This level has not been adequately tested in the past. This area has remained mostly untapped by any sustained volume because previous upswings lost momentum before ever reaching it. Technically speaking, because they don't have established clusters of sell orders that usually cause pullbacks, untested resistance zones may be simpler to breach once momentum builds.
For this reason, Monday's trading session may be crucial. Volume and liquidity typically increase at the beginning of the week, providing XRP with the momentum it needs to break through this last obstacle and test the crucial $3 level. The market structure is still very bullish.
All of the daily charts' major moving averages, including the 50, 100 and 200-day lines, are well above XRP. These lines have now flattened out or turned upward, signaling a significant transition from a consolidation phase to an acceleration phase. However, the Relative Strength Index is well above 80 in overbought territory, indicating that short-term traders may take profits, which could lead to a brief retracement.
But especially in trending markets like this one, consistent high-volume buying can maintain the RSI high for prolonged periods of time. The impressive volume spikes that have accompanied this rally have confirmed the move's legitimacy and suggested institutional involvement.
A single strong candle could clear this resistance, paving the way for an attack on $3, an area the asset has not seen since the last significant bull run, if Monday's session begins with high conviction buying. Investors should keep a careful eye on the response as XRP gets closer to this untested level.
As sidelined buyers rush to join, a confirmed breakout above $2.90-$3 on growing volume would probably unleash more momentum. XRP is quickly approaching the final obstacle preventing it from reaching a significant psychological milestone as sentiment heats up.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team