The price of Ripple’s XRP has surged significantly and maintained its upward trend, marking an impressive 550% increase since November, reaching levels close to the previous cycle’s peak of $3.3.
Recent days have seen XRP consolidating tightly between its December high of $2.9 and its peak in 2021.
Strong Bullish Trend in XRP Market
Despite some concerns regarding large-scale selling by whales, the current market conditions heavily favor the bulls. The 12-hour chart’s RSI indicates robust buying pressure, while the Directional Movement Index (DMI) suggests that although the upward trend has slowed slightly, the bulls still maintain control.
Analysis using the Trend-based Fibonacci Extension tool points towards a potential key resistance level at $4.3, with a potential future target of $6.8 in a medium-term scenario if a FOMO-driven rally surpasses that level. The approval of an XRP ETF could serve as a significant catalyst for this movement, with market odds currently indicating a high probability of approval.
Optimistic Environment for XRP Bulls
One notable aspect of the XRP market is the absence of excessive speculation despite reaching a 7-year high. The stability in funding rates, without significant spikes as seen in previous peaks, indicates a healthy market environment. This lack of excessive speculation could provide the necessary foundation for further upward movements by XRP bulls.
However, a potential drop below the 50-day moving average at $2.4 might embolden short-term sellers and lead to a market correction, dragging XRP’s price lower.