XRP Breaks Out of Consolidation Zone, Poised for a Massive Upside Rally

XRP's price could soar by 17% to reach the $0.65 level if it closes a daily candle above the $0.5580 level. Combining on-chain metrics with XRP's technical analysis, it appears that bulls are currently dominating the assets

Cryptocurrency prices have been on a roller coaster ride in 2024, with some assets, like Bitcoin, experiencing a prolonged downturn. However, other assets, like XRP, have shown promising signs of recovery.

As of October 15, 2024, XRP has broken out of its prolonged consolidation zone and is poised for a massive upside rally. Here's a closer look at XRP's price action and what to expect in the coming days.

Prolonged Consolidation Breakout

After consolidating for nearly two weeks, XRP finally broke out of its narrow trading range on Friday. This breakout occurred as whales and institutions acquired XRP tokens in anticipation of its Spot Exchange Traded Fund (ETF) filing in the United States.

The XRP price soared by over 3.6% in the past 24 hours, and its trading volume surged by 90% during the same period. This strong price momentum bodes well for XRP as it emerges from a period of consolidation.

Technical Analysis and Upcoming Levels

CoinPedia's technical analysis reveals that XRP is facing resistance at the 200-day Exponential Moving Average (EMA). While XRP has broken out of the prolonged consolidation zone, it may encounter difficulties until it breaches the 200 EMA and closes the daily candle above it.

If XRP manages to close a daily candle above the $0.5580 level, there is a high probability that XRP could soar by 17% to reach the $0.65 level or higher if the sentiment remains positive.

Also, XRP's Relative Strength Index (RSI) is currently in the oversold area, which suggests a potential price reversal in the coming days.

Bullish On-Chain Metrics

XRP's bullish outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, XRP's Long/Short ratio currently stands at 1.039, indicating strong bullish sentiment among traders.

Moreover, its future open interest has soared by 9.5% over the past 24 hours and 3.9% over the past four hours. This rising open interest suggests growing trader interest in XRP, with a potential bias toward long positions over short ones, as sentiment has quickly shifted following the breakout.

Combining these bullish on-chain metrics with XRP's technical analysis, it appears that bulls are currently dominating the asset and could potentially trigger a significant upside rally in the coming days.

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