- Ripple leads cryptocurrency recovery adding 25% in gains.
- A falling wedge pattern bolsters Ripple into a breakout eyeing $1.72 while bulls look toward $2.
- The profit or loss ratio resets, implying that XRP is back in the buy zone.
Ripple saw a significant retracement last week from highs close to $2 to price levels marginally above $0.85. The correction ended a consistent winning streak that had seen the cross-border token enjoy a much sought after bull run.
Following the rebound above $1, XRP bulls staged a recovery mission. Support at $1.2 was reclaimed following a breakout from a key falling wedge pattern. In the meantime, XRP trades at $1.43 in the wake of a real break past $1.4.
Ripple’s Technical Breakout Eyes $2
The falling wedge is illustrated on the four-hour chart. This pattern comes into the picture amid a downtrend and signifies a weakening bearish front. As the trend lines meet, bulls prepare to take over control. A break is anticipated as the price crosses above the upper trend line and marks the beginning of an uptrend.
XRP/USD four-hour chart
The prevailing technical picture shows XRP is ripe for a major uplift. The price has broken above the 100 Simple Moving Average (SMA) on the four-hour chart. If this level turns into support, bulls will be allowed the opportunity to concentrate on gains toward $2.
Meanwhile, the Relative Strength Index (RSI) reinforces the bullish outlook after recovering from the recent to the oversold region. As the trend strength indicator draws near the overbought territory, Ripple bulls are encouraged to increase their positions hence the ongoing recovery. A break above $1.5 would trigger massive buy orders, perhaps enough to support a breakout to $2.
The market value realized value (MVRV) by Santiment reset from highs close to 120%, hitting zero for the first time in 30 days. The drop in the ratio implies that most investors had cashed out for profit. As the MVRV hits zero and below, investors fall back into losses and are unlikely to sell. At the time of writing, the ratio stands at 30% but still moving upward. In other words, holders consider buying more into XRP in anticipation of gains toward $2.
Ripple MVRV chart
Looking at the Other Side of the Fence
Ripple teeters at $1.43 at the time of writing. At the same time, bulls depend on the support at the 100 SMA and $1.4 to keep the uptrend intact. If overhead pressure rises and the price slices under the anchor zones, a correction may occur toward $1, delaying the upswing toward $2.