XRP is Starting to Show Signs of Life as Analysts Forecast a Breakout Rally


It’s no secret that XRP has been one of the worst-performing major altcoins within the crypto market.

It has faced intense losses in recent months and years, with its investor base being unable to catalyze any significant rebound.

This has caused it to lag behind all its peers, significantly underperforming both Bitcoin and nearly all other major altcoins. It even ceded its spot as the third-largest digital asset to Tether (USDT).

Part of the reason why the token has been struggling to garner any momentum is due to disappointment regarding its utilization.

Ripple – the company closely associated with the token – has been unable to drum up any noteworthy support for its “On-Demand Liquidity” (ODL) product, which was formerly named xRapid and utilizes the digital token to make cross-border transfers.

Despite this, XRP is beginning to show some signs of life as bounces at a crucial support level.

This has led analysts to forecast further upside, with it potentially being poised to see a notable rally in the days ahead.

XRP Breaks Long-Held Downtrend Channel After Bulls Defended Crucial Support

At the time of writing, XRP is trading down just under 2% at its current price of $0.186.

Although it has declined alongside Bitcoin and the aggregated cryptocurrency market, it is important to note that it was recently able to post an incredibly bullish reaction to its multi-day lows of $0.17 that it set this past weekend.

After tapping this level, buyers rapidly sent it surging to highs of $0.19, which is where it has since found some resistance.

Analysts are noting that this movement was significant from a technical perspective.

One trader noted that it allowed the crypto to break a downtrend channel and defend its crucial support at $0.18 following its latest rejection.

“XRP pushing for the recovery here. Breaking the downtrend channel and bouncing over horizontal support.”

XRP

Image Courtesy of Crypto Rand. Chart via TradingView

If it continues holding above its support at $0.18, it may push higher in the near-term.

Analyst: The Token Could Soon Post a Major Breakout

This isn’t the only positive development on XRP’s technical front.

Another analyst recently explained that it is “time to start paying attention” to the embattled digital asset, offering a chart showing that it is currently in the process of breaking above the upper boundary of a descending triangle pattern.

Image Courtesy of Credible Crypto. Chart via TradingView

Once it breaks out of this pattern, it could find itself caught within a firm uptrend.

From a macro perspective, its long-term outlook remains bleak as long as it fails to garner any major utility.

Featured image from Shutterstock.

Charts from TradingView.



Source link