October 31, 2023
XRP price has been maintaining a bullish outlook for the third consecutive week, showing impressive performance with a 16% surge in the past 30 days. In the last 24 hours alone, the cross-border money remittance token has increased by 7.7% and is currently trading at $0.61.
Traders have been actively seeking scalping opportunities in altcoins like XRP, Solana (SOL), Cardano (ADA), and Toncoin (TON), among others. This surge in trading activities has significantly contributed to the trading volume, which reached $2.3 billion on Tuesday, according to market data from CoinGecko.
If the bullish outlook continues, there is a possibility that XRP could surpass Binance Coin (BNB) and become the fourth-largest cryptocurrency in the market. BNB currently has a market value of $35 billion, while XRP's value stands at $32 billion.
XRP has recently climbed back above $0.6 for the first time since mid-August. This upward trend, although subtle, is supported by the Moving Moving Convergence Divergence (MACD) indicator.
The MACD indicator has presented a buy signal with the blue MACD line crossing above the red signal line. Additionally, the momentum indicator remains above the mean line and is ascending into the positive region. As long as this bullish outlook persists, the path of least resistance is expected to be towards the upside.
However, bulls should be prepared to face resistance at the 38.2% Fibonacci retracement level of $0.62, followed by another hurdle at $0.65.
For the first time since April, XRP price has formed a bullish cross on the daily chart. This pattern is observed with the 50-day Exponential Moving Average (EMA) crossing above the long-term 200-day EMA.
Traders often rely on the Golden Cross to confirm the validity of an uptrend. However, it is crucial for this pattern to be accompanied by an increase in demand for the token to be effective.
The Relative Strength Index (RSI) further supports the bullish narrative and the strong market structure, with its strength above 75. Nevertheless, traders should remain cautious and not disregard potential pullbacks, which may occur due to profit-booking and other investor activities.
A sudden drop of the RSI into the neutral areas would serve as confirmation of a retracement. Meanwhile, support is expected at $0.56, which could act as an accumulation level, attracting more investors and traders to buy XRP tokens at a lower price with the potential for gains above $1.
Increased liquidity and high volatility are two essential factors for price rallies in the crypto market. Pullbacks and consolidation periods are necessary in bull markets as they help build momentum for significant breakouts. In the case of XRP, these breakouts could be substantial enough to close the gap towards $2.
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