Big breakout on cards for Ripple (XRP) Price: Analyst

TL;DR

The price of XRP has been volatile, recently hovering around $0.57 after a significant drop and a partial recovery. Analysts are predicting a possible breakout, with some pointing to a near-term rise to $0.65. What could be next for XRP?

The past few weeks have been beyond turbulent for Ripple’s XRP. Its price was trading well above $0.60 at the beginning of the month before falling to $0.43 on August 5 (amidst the global crypto market collapse that took place that day).

Three days later, however, XRP turned north, breaking above $0.63 following a major development in the Ripple lawsuit against the SEC. Judge Torres ruled that the company must pay a fine of $125 million for violating certain securities laws, a sum that represents a deduction of 94% compared to the regulator’s initial request of $2 billion .

XRP was unable to sustain the momentum and in the following days, it retreated below $0.60. It is currently trading around $0.57 (according to CoinGecko data), a 25% increase on a two-week scale.

XRP Price, Source: CoinGecko

Some analysts remain optimistic that a new revival could be on the cards. Crypto Rover, an X user with more than 800,000 followers, claimed that XRP is “preparing for a major breakout.” He based the forecast on the potential crossing of the asset’s upward and downward trend lines. The meeting point is usually a precursor to a violent movement in any direction.

CRYPTOWZRD also gave his two cents, arguing that XRP’s chart remains “overall positive.” The analyst expects a short-term rally to the $0.65 resistance level, which could then be followed by further upward pressure.

What does the RSI suggest?

An important metric that measures the price change and speed of XRP is the Relative Strength Index (RSI). It ranges from 0 to 100 and shows whether the token is overbought or oversold.

A ratio above 70 indicates that XRP is in overbought territory, meaning a price correction could be on the cards. The RSI is currently hovering around 60, breaking above the mentioned zone only once in the last 20 days.

It is worth noting that the ratio fell below 20 in early July, when the price of XRP was around $0.39. Soon after, the asset experienced a substantial resurgence, ending the month at nearly $0.66.

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