XRP has shown a lot of potential after its price bounced off a major trendline and has now been able to turn previous resistance levels back into support. As the crypto market looks to be in an uptrend, it is likely that the XRP price could see a continuation of the current bullish trend going into the new week. If this happens, crypto analyst Lingrid sees such a move leading the digital asset back toward its all-time high levels before the next major decline.
XRP Price In A Perfect Position For Continuation
In the analysis, Lingri points out that the XRP price is now holding support at a notable level, which is above $3. This comes after a crash below this level, as bears had beaten down the price. However, as the ascending trendline had moved, the cryptocurrency was able to break above, and this meant that it was a signal for a possible continuation.
The analyst had initially predicted a decline back below $3.2, but the emphasis was on the fact that the $3.15 support is able to hold after the rebound. This level now becomes the level to watch, especially if the structure is able to remain intact from here.
In the event of a bounce from the $3.15 support and a breakout, Lingrid expects a sharp upward movement for the XRP price. The buy zone here is placed at the $3.1-$3.2 levels, with a break above $3.4 being the confirmation of the buy trigger.
Once the move is underway, a 20% move is expected to send the price toward $3.8. This is where the next major resistance lies for XRP once the break is complete. “A breakout above 3.4000 could open the way for accelerated upside movement. Trend bias remains bullish while price holds above key support,” Lingrid stated.
Bears Could Still Take Control
As is the case with any analysis, there is the possibility of an invalidation and that the XRP price would end up going the opposite direction. In this scenario, it is if there is another break below $3 again, which would serve as the invalidation move that will put bears back in control.
Lingrid explains that such a breakdown would shift the trend to bearish. There is also the possibility of limited upside brought about by a weakening of the market. Even in the event that the XRP altcoin does complete the bullish move to $3.8, the crypto analyst says the resistance near $3.8 could also trigger a sharp rejection.