XRP set to Stage Comeback, 60% Breakout in the Works

As Bitcoin is hitting new annual highs, XRP has been waiting for the pressure on buying to increase.

Numerous technical indices and metrics on the chain now reveal that this cryptocurrency is about to have its moment of glory.

XRP faces stiff resistance

When looking at XRP from a macro perspective, such as the 1-week chart, the $ 0.30 level has proved quite significant for this cryptocurrency’s trend.

This price barrier served as strong support between August 2018 and August 2019.

It was able to hold the token of cross-border remittances resulting from massive losses several times during this period. But in mid-August 2019, the selling pressure behind XRP was strong enough to break out of the $ 0.30 support level, which led to a 25% retracement.

Since then, the $ 0.30 support level has turned into strong resistance, rejecting any bullish price action.

Every time XRP has tried to break through this supply barrier, a major fix follows. For example, this altcoin plunged more than 38% after testing the $ 0.30 resistance at the end of October 2019. Similar price action occurred in February and August of the current year, triggering a pullback 60% and 30%.

Now, the international settlements token is once again attempting to overcome the infamous $ 0.30 hurdle.

A massive escape on the horizon

It appears that the price action observed over the past year has led to the creation of an ascending triangle within the XRP weekly chart.

A horizontal resistance wall developed along with the swing-highs, while an ascending trendline was created along with the swing-lows.

A further spike in buying pressure around current levels could be significant enough to break the overhead resistance at $ 0.30. Facing this multi-year supply wall would likely see prices jump over 56% to the next crucial interest area at $ 0.46.

This goal is determined by measuring the distance between the widest point of the triangle and adding it to the breaking point.

The recent surge in network activity adds credibility to the thesis that XRP is about to break out.

Many new XRP addresses have been created in the last month which is an extremely bullish sign as it shows an increase in user adoption over time.

Usually, when the network expands over an extended period, prices tend to follow.

Regardless, only a weekly close of the candles above the $ 0.30 level will confirm the optimistic outlook.

Failure to do so could trigger a sudden spike in sell orders causing general resistance to be rejected.

Under such circumstances, XRP would roll back towards the hypotenuse of the triangle at $ 0.27 before it attempts to break out again.