Over the past 24 hours, the XRP price has managed to keep its head above water despite a retracement, standing at a 0.66% gain. Meanwhile, one analyst has come up with an interesting comparison, claiming that XRP is in for a “huge squeeze.”
This speculation comes despite XRP still reeling from losses since Monday, down 5.29% – a notable weakness compared to other altcoins that have mounted recoveries.
Despite these setbacks, trader interest in XRP appears to be increasing. The altcoin’s trading volume has surged 25.23% to $615 million over the past 24 hours.
XRP Price to Squeeze Against Bitcoin: Is a Breakout Imminent?
In a September 8th X post, popular trader Crypto Michael highlighted a “huge squeeze” forming on the XRP/BTC price chart.
XRP/BTC looks ready for a huge squeeze pic.twitter.com/O0lzuHbTCZ — Crypto Michael (@MichaelXBT) September 8, 2024
This observation is supported by an ascending triangle pattern that has developed since mid-July, characterized by higher lows as the asset price converges towards stubborn resistance as it approaches a breakout.
In an X post the day prior, the analyst pointed to the resistance at $0.55 as a target, overcoming which would lead the XRP price to “pump hard.”
A closer look at the XRP/USDT chart indicates that this move might be approaching.
XRP/USDT 1H chart, falling wedge pattern. Source: Binance.
XRP is currently confined within a falling wedge pattern, reflecting growing volatility as the asset navigates a period marked by fear, uncertainty, and doubt (FUD). As the asset unwinds its selling pressure, this pattern converges toward a potential breakout point.
However, momentum indicators now appear more favorable. The Relative Strength Index (RSI) has managed to maintain its position in positive territory, currently at 60. Although still neutral, it represents a shift towards bullishness.
Likewise, the Chaikin Money Flow (CMF) has emerged out of its recent rut, now at +0.1. Buying pressure has taken the edge, making a potential breakout promising.
Indeed, as the MACD line holds above the Signal line after a recent cross above it, it seems that the bulls are leading XRP’s next move.
Fundamentals also lean in XRP’s favor. Most significantly, Ripple announced that their stablecoin will likely launch this year. If it meets widespread adoption, it may serve as a catalyst for price action.
However, traders should look for a decisive break above the resistance presented by the 200EMA for confirmation of a breakout from this pattern before a move to $0.55.
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