XRP price breakout in the cards as multi-year resistance falls 
Cryptocurrency Nov 13, 2024 Share
XRP has struggled to breach the $1 mark for years, predominantly consolidating below $0.60. However, recent momentum in the crypto market has propelled XRP into the spotlight, with the token showcasing a powerful rally over the past 24 hours.
This surge has pushed XRP’s price toward a critical resistance level at $0.75, boosting its market cap above $40 billion and signaling a potential breakout.
Technical indicators, including key support and resistance levels, reinforce the view that XRP could be headed toward higher targets, with a short-term outlook aiming at $1.03 as buying pressure continues to build.
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As of press time, XRP is trading at $0.74, having gained 7% in the past day and 37% on the weekly chart.
XRP seven-day price chart. Source: Finbold
Technical indicators support a strong rally
In an analysis shared by trading expert Dark Defender on November 13, XRP’s breakthrough above $0.70 is highlighted as a crucial shift.
XRP price analysis. Source: DarkDefender/X
The move is further supported by a breakout in the Relative Strength Index (RSI), confirming substantial buying momentum.
This aligns with the third wave of an Elliott Wave structure, often the most powerful phase for price growth. Fibonacci extensions offer key targets for XRP’s trajectory: a short-term target of $1.88 at the 161.8% extension and a potential longer-term target of $5.86 at the 261.8% extension.
For XRP to sustain this upward momentum, holding above $0.70 will be essential, with consolidation expected around $1.88 before any further gains. If the current trend holds, XRP could reach as high as $5.86, marking a significant milestone in its rally cycle.
This level aligns with the peak of Wave (5) and could represent the ultimate target if the bullish momentum holds over the longer term.
Derivative data points to growing market confidence
Derivatives data from CoinGlass reveals a bullish outlook for XRP with notable metrics supporting the ongoing rally.
XRP derivatives data analysis. Source: CoinGlass
While trading volume has dipped by 8.71% to $9.96 billion, open interest has risen by 5.72% to $1.17 billion, reflecting stronger trader engagement and expectations for significant price moves.
The options market adds to this sentiment, with a 17.41% increase in options volume and a 16.20% rise in open interest, indicating that traders are positioning for potential upside in XRP’s price.
Additionally, recent liquidation data reveals considerable long liquidations totaling $15.16 million in the past 24 hours, including $9.93 million in long positions.
Despite these liquidations, the market retains a predominantly long bias, underscoring substantial buy-side interest.
Together, the derivatives data illustrates a bullish scenario, with increased open interest, strong options activity, and a clear inclination toward long positions, which may support continued price growth for XRP.
Key drivers fueling XRP’s rally
The recent surge in XRP’s price can be attributed to both market speculation and renewed optimism about its role in the broader crypto landscape.
On November 12, a report from market analyst Zach Rector suggested a possible meeting between Ripple and U.S. President-elect Donald Trump, sparking heightened investor interest in XRP.
Another potential catalyst for XRP’s next breakout is the anticipated launch of an XRP exchange-traded fund (ETF).
Investment firm 21Shares has recently filed for regulatory approval for an XRP ETF.
However, it remains uncertain if approval will be granted and if so, whether XRP will experience a rally comparable to Bitcoin’s following its ETF launch.
With mounting technical and fundamental factors driving interest in XRP, the token appears poised for potential growth.
The coming weeks will reveal if XRP can break its long-standing resistance and capitalize on this renewed momentum, potentially reaching new highs and reclaiming the $1 threshold.
Featured image via Shutterstock