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Over the past seven days, XRP has undergone a significant period of correction, in line with the broader market situation. But today, the price chart of XRP showed something that should please owners of this altcoin.
The current pattern, observed, has led to the Token price breaking out to the previous level of $2.90. Will a similar situation repeat?
Token Wishes to Recreate History
From September 29 to November 6, XRP price moved in a descending triangle. This bearish chart pattern has a descending upper resistance level and a flatter lower horizontal line.
When the price falls below the horizontal line, there is usually a bearish continuation. Conversely, a break above the upper resistance usually triggers a significant rally. Around November 7, XRP broke out of this pattern, leading to an impressive 350% price increase.
The daily chart shows the token forming another descending triangle. If history repeats itself, the value of this altcoin could experience another significant increase.
Another indicator that supports this trend is the Money Flow Index (MFI). MFI measures buying and selling pressure by analyzing cryptocurrency prices and volumes.
This indicator ranges from 0 to 100. Typically, when the MFI exceeds 80, the asset is overbought, indicating it may be time to sell. Conversely, when the index is below 20, this means it is oversold and it may be time to buy.
Currently, the MFI has increased from 42.05 to 61.64, indicating significant buying pressure around XRP. If this continues, the altcoin could rally above $2.24.
XRP Price Prediction: Likely 43% Increase
A look at XRP’s price action shows that the cryptocurrency has been consolidating between $2.20 and $2.72 since December 3. This shows indecision among buyers and sellers.
However, with the increase in MFI, the trend may change to a positive direction in the short term. At the same time, XPR faces outstanding resistance at $2.90. To overcome this obstacle, buying pressure needs to be stronger than current levels on the XRP price chart.
If that is the case, the altcoin’s value could go up as much as 43.53% to $3.20. Conversely, if the $2.90 resistance cannot be overcome, this prediction may no longer be valid. In that scenario, XRP price could drop to $1.40.
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