The cryptocurrency XRP is currently testing its crucial support zone of $2.80 to $2.95, where analysts describe it as a “make-or-break” level for the near future. As we step into August, there are indications that XRP may be positioning itself for a potential rebound with at least a 20% price increase on the horizon.
Recent charts reveal that a significant bullish divergence is occurring within XRP’s price trajectory. Specifically, while XRP has been making lower lows, the Relative Strength Index (RSI) has been forging higher lows. This noticeable disconnect indicates that the recent selling pressure appears to be waning, providing hope for investors observing these market dynamics.
In addition to the bullish divergence, XRP’s daily chart is showcasing a Dragonfly Doji candlestick pattern. This pattern is characterized by a long lower wick, indicating that buyers emerged strongly following initial selling activity. Traders might recall that a similar scenario took place back in April, where similar candlestick formations led to a remarkable 65% price jumping for XRP.
According to analysts, if XRP manages to maintain its price above the support zone of $2.80-$2.95, it could sustain its bullish momentum. This zone functions as a vital psychological barrier – surpassing it might trigger a new wave of buying pressure. Additionally, XRP is manifesting a classic falling wedge pattern on the four-hour chart, which generally signifies potential upward movement.
The path to growth looks promising: should XRP break above the upper boundary of the wedge, it may rally towards the $3.60-$3.65 range. This potential price spike aligns with the 0.236 Fibonacci retracement line, positioned around $3.07 and further strengthens the case for a robust recovery. However, this discussion speaks—like any trading analysis—of the inherent risks involved in investment. Responsible trading strategies with thorough research are recommended.
