XRP has just undergone a distinct technical structure change on the price chart - a development that could have far-reaching impacts on the price trend in the near future. After months of trading within a descending price channel, this digital asset has unexpectedly broken out of the old range, attracting special attention from investors and the technical analysis community.
Breaking Down the Descending Channel Structure: A Sign of a New Trend?
In a recent analysis, the well-known trader with the Twitter account @2020XRP emphasized that XRP has officially broken out of the descending channel pattern - a signal that he believes could lead to a "value explosion".
Observing the daily chart attached in this analyst's article clearly shows: not only did it surpass the upper edge of the descending price channel that has lasted since May, but XRP also closed above the important horizontal resistance level around $2.35 - an area that has repeatedly hindered upward momentum in the past.
At the time of analysis, XRP was trading at $2.3771 - up nearly 3% for the day. However, the upward trend did not stop there: the current price has reached $2.59, corresponding to an increase of over 7.28% in the past 24 hours - confirming the clear strength of the breakout.
Technical Significance and Growth Expectations
XRP's breakthrough past both resistance lines - the descending trend line and the horizontal resistance zone - is a significant technical development. Over the past few months, XRP has repeatedly formed lower highs and lower lows - characteristic of a long-term downtrend. However, the recent daily candle decisively broke this pattern, implying that the trend may have reversed.
Notably, the sharpness and solidity of this breakout: unlike previous rallies that often lacked sustaining power, this time XRP maintains its price above the breakout threshold - indicating support from real money flow and market confidence.
If XRP can maintain a price above $2.35 and turn this area into support, higher price targets in the short and medium term will become feasible - with the next resistance zone possibly around $2.80 - $3.00.
The XRP Community Anticipates a Major Breakthrough
Not only technical analyses, optimism also stems from the changing macro context around the Ripple ecosystem. Recently, Ripple - the parent company of XRP - has applied for a banking license in the United States. This is an important step in Ripple's efforts to expand its role in the traditional financial system, and if approved, could elevate the utility value of XRP in payments, asset custody, and international transfers.
Observers believe that Ripple officially having a banking entity in the U.S. will open the door for XRP to be more deeply integrated into legitimate financial services - thereby creating more practical and stable demand for this cryptocurrency.
Conclusion
The breakout from the descending channel, combined with the strong technical factors and positive foundational information, is creating a very optimistic scenario for XRP in the near future.
If this trend continues to be reinforced by confirmation from trading volume and strong price support, XRP may be entering a new growth cycle - not only in the short term but also in both medium and long-term strategies.