The seventh-biggest cryptocurrency, XRP, is in desperate need of a significant test as it tries to build a new price move. Its short-term price trend may be determined by the result of this test; a breakout might open the door to large gains.
A critical resistance level identified by technical analysis may open the door for the price of XRP to continue rising.
A spike in purchasing activity may result from XRP breaking over this barrier, driving the price towards higher goals. On the other hand, a failure to break out might lead to a possible retreat or an extension of the current consolidation.
It has been determined that the daily SMA 200 and the resistance level at $0.578 are crucial for the XRP price. Since the middle of April, the price of XRP has been restrained by this level and the daily SMA 50 at $0.529. With the recent breach over the daily SMA 50, XRP now faces competition from the daily SMA 200.
If this barrier is successfully broken, it may indicate a bullish turnaround, which could trigger a 40% increase and allow XRP to recapture its high of $0.748 from March. However, it has to clear resistance levels at $0.642 and $0.662 before it can go this high. The continuation of XRP above the daily SMA 50 is also necessary for this scenario.
Because of this, market watchers are keeping a close eye on the price activity of XRP in order to spot possible breakout signs.
If XRP is unable to overcome the barrier, it may continue its present consolidation phase and trade in a range as it looks for fresh forces to pick up steam. XRP may retest support levels at $0.50 or less during a decline. On the other hand, a collapse below $0.467 may trigger a bearish situation and cause the price to retest the $0.42 mark.
According to CoinMarketCap statistics, at the time of writing, XRP has dropped 0.19% in the previous day to $0.535.
The next few days might be crucial for the price of XRP because the market will be closely monitoring these events. It remains to be seen if it will break through the indicated resistance levels or experience a setback.
