Ripple’s XRP has experienced a notable resurgence, with a sudden surge in price creating a bullish engulfing candle and improving market sentiment overnight. This positive momentum comes on the heels of a major announcement from Grayscale, potentially setting the stage for a breakout rally.
XRP’s daily chart reveals a recovery rally in motion, with the cryptocurrency currently trading at $0.5600. This follows an impressive 5 % jump the previous night, which formed a bullish engulfing candle.
Moreover, the price action indicates a potential trend reversal, with XRP forming a new higher low after a series of lower lows in the short term.
XRP showcases bullish outlook
Technical indicators offer further support for XRP’s bullish outlook. The Moving Average Convergence Divergence (MACD) and its signal line are on the verge of a bullish crossover, suggesting increased trend momentum.
Additionally, the Relative Strength Index (RSI) has surpassed the halfway line, coinciding with the formation of the bullish engulfing candle.
Grayscale’s announcement of an XRP Trust has injected fresh optimism into the market, reigniting speculation about the potential for an XRP ETF in the United States. This development has dramatically shifted market sentiment, boosting confidence in XRP’s cross-border payment system and its long-term prospects.
Looking ahead, Ripple coin faces immediate resistance at the 50% Fibonacci retracement level of $0.5707. A successful breach of this threshold could pave the way for further gains, with the 61.80% and 78.60% Fibonacci levels at $0.60 and $0.65, respectively, serving as subsequent targets. These levels represent key milestones in the coin’s potential recovery journey.
However, caution remains warranted as crucial support levels loom at $0.5347 and the psychologically significant $0.50 mark. Failure to maintain momentum above these levels could result in a period of sideways trading between the 38.20% and 50% Fibonacci levels, potentially delaying XRP’s upward trajectory.
