The XRP price is still showing bullish momentum despite the previous wave of downtrends. After falling below $2.8, a quick bounce was able to reclaim this level once again as support, putting it on a path lined with further gains. With the formation of an ascending trendline, the XRP price may be sitting on a ticking time bomb primed for explosion, and this would send it back toward its July peaks as bulls find their way back into the market again.
XRP Price Breakout Could Notch 20% Gains
The analysis from CMF Trading Point shows that the XRP price is at a critical level after the formation of an ascending trend line. This trend line has always been bullish, and with the return of bulls, it might be as bullish as it gets. Given this, the crypto analyst has given a reasonable target for where the XRP price could be headed next.
Since the price is currently needling around the $2.82 level, it shows that there is still strength after the bulls reclaimed the $2.8 support. If this level holds and the ascending trendline breakout is completed, then the first target from here is for the XRP price to reach $3.
Once this first target is achieved, then the price can quickly move on to the next target, which lies at $3.40. A completion would mean a 20% total increase, while still providing room for a possible continuation. If momentum holds, it could set the XRP price on a path to new all-time highs.
What Happens If The Ascending Trendline Fails To Hold?
In the event that the ascending trendline fails and the XRP price falls further, then it could spell a period of downtrend for the cryptocurrency. The analyst explains that the XRP price actually needs to stay above $2.20-$2.25 for the bullish breakout to remain valid. Otherwise, it would mean trouble.
A breakdown below this level would trigger the start of another downtrend that could send the price spiraling toward $2. If sell-offs continue to pile on at this level, then XRP could crash below $2, leading to another bear market.
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