The cryptocurrency market has begun its bull run as Bitcoin (BTC) recently surged above $71,000. While many coins are riding this wave, Ripple’s token, XRP, has faced challenges and is currently trading at around $0.52, down about 4% over the past week. Despite this, could a big breakout be just around the corner for XRP?
Ripple Faces Key Challenges
XRP has seen a significant drop, mainly down over 80% from its peak prices. It has hit a tough resistance zone around $0.55, driven by the 100 and 200-day moving averages. This situation has led to a sharp pullback, pushing XRP close to a crucial support level. Analysts believe it may remain stuck in a period of sideways movement as it tries to find stability.
Adding to the uncertainty is the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Recently, the SEC appealed a favorable ruling for Ripple, which found that XRP sales to retail investors were not securities violations. This legal cloud has made it harder for XRP to gain traction in the market.
XRP Breakout Predictions: $7.5 Next
Despite these hurdles, some analysts are optimistic about XRP’s future. Prominent Crypto trader EGRAG CRYPTO believes XRP could skyrocket to as high as $7.50 by the end of 2024. However, this rally will only be possible if XRP breaks through the $0.5930 resistance level in the next two days.
Adding optimism to the prediction another crypto analyst, Dark Defender, points out that XRP often starts to rise when Bitcoin’s market dominance falls. Currently, Bitcoin’s dominance is close to 60%, creating uncertainty about when XRP might gain momentum.
Signs of Potential Indicators
On a positive note, various metrics related to XRP have shown signs of growth. On October 28, there was an increase in executed transactions, new account activations, and overall payment volume within the XRP ecosystem.
These rising metrics indicate heightened demand and engagement, potentially setting the stage for an upward movement in price. Increased activity in the XRP network often suggests growing confidence among investors, which could lead to more capital flowing into the market.
