Once more, XRP is preparing for pivotal moment that might trigger a huge rally and move the asset closer to the eagerly anticipated $3 mark. Following a protracted downward wedge pattern, XRP soared above significant resistance levels before experiencing a brief correction. The asset's next significant move may be determined by the 26-day EMA, which is currently serving as the primary support level.
This EMA line has recently crossed above the 50 and 100-day EMAs, and the price action indicates that XRP is testing it. This type of crossover is typically a sign that short-term momentum is outpacing longer-term averages, which is a strong bullish signal that frequently precedes significant upward movements.
In addition to disproving the possibility of a U-turn retracement, XRP's strong recovery off the 26 EMA would reinforce bullish market dominance. The volume is the catch though. After the recent surge, market participation is waning, and XRP is trading with dwindling volume. The current uptrend's sustainability is called into question by this discrepancy between volume and price action.
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If trading volume does not significantly increase, any upward move might not have enough momentum to hold up or overcome additional resistances like $2.70 and eventually $3. Nevertheless, the structure is still hopeful. Even after breaking out of the wedge pattern, XRP is still above all of the major moving averages.
Given the neutrality of momentum indicators, a resumption of buying pressure could easily spark the rally again. The road to $3 is open, in summary, but XRP must hold the 26 EMA and restore market volume. If both are satisfied, XRP may return to multi-year highs in the upcoming weeks.
