XRP, the cryptocurrency associated with Ripple Labs Inc., is showing signs of resilience with a recent 4.2% gain. This increase in XRP’s price follows its action to break above resistance at the $0.5 mark.
XRP Hits The Big Break Above $0.5 Mark
As of the latest CoinMarketCap data, XRP has broken over the $0.5 threshold, trading at $0.5186. This represents a 4% increase in the last 24 hours, with market capitalization pegged at $28.7 billion.
Based on technical analysis, XRP went into the descending triangle formation which had previously been invalidated. Typically, this formation signals a bearish trend, however, for XPR to reenter this level, it suggests an imminent attempt from bulls to redefine the cryptocurrency’s future movement.
For the first time in weeks, XRP saw a spike in purchasing power. As a result of this increase, XRP’s price moved toward a cluster of moving averages, including the 50, 100, and 200 EMAs. These moving averages act as important levels of resistance, and a breakthrough can portend a change in direction toward a more bullish trend.
XRP Remains in a Downtrend
Although XRP moved beyond the $0.5 threshold, the cryptocurrency remains in a downtrend. XRP’s price movement is still struggling below the descending triangle’s resistance line, suggesting persistent bearish pressure.
However, bullish attempts are still fighting against the bearish sentiments as indicated by moving averages trending downwards.
While the future appears bright for XRP, the market needs more price action to overcome the descending triangle’s resistance and the cluster of moving averages showing from $0.54 to $0.56. For this to happen, the trading volume will need to continue in an upward trend beyond the 20% surge at the moment.
In a recent development, Ripple transferred 100 million tokens from an unknown wallet. The move coincides with the recent surge in the price of XRP.
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