XRP, one of the best-performing cryptocurrencies, has seen a 2.5% increase, reaching $0.5052. The token is preparing for a bullish launch above its immediate support at $0.5, aiming for a breakout target of $0.56, which could pave the way for a push towards the psychological resistance level of $1.
The recent price action in September has formed an inverse head and shoulders (H&S) pattern, indicating a potential bullish trend reversal. Traders are waiting for the price to break above the neckline resistance at $0.51 before placing buy orders, with a projected breakout equal to the height of the pattern, potentially resulting in a 10% increase.
To sustain the upward momentum, it is crucial for bulls to defend the support level at $0.5. Despite their efforts, they have struggled to gain ground above this level since the beginning of the month.
The Money Flow Index (MFI) suggests that buyers currently have the upper hand, as more money is flowing into XRP markets than out of them. However, if the MFI reaches the overbought region above 80, it may indicate the need to exercise caution or close long positions.
Other indicators, such as the SuperTrend, also support the bullish outlook by trailing XRP’s price and indicating that the path of least resistance is to the upside.
Bulls should aim to surpass the monthly open at $0.5115 to establish it as a stronger support level. This would enable XRP to explore the inverse H&S pattern and potentially push for gains above $0.56, bringing key hurdles at $0.85 and $1 within reach.
Traders should pay attention to the daily open at $0.5033, which currently serves as a short-term support area. If XRP manages to close the day above this level, it suggests stability and the potential for further upward movement towards $1.
In case of a rejection and a slide below $0.5, the 100-day EMA (blue) at $0.5013 and the 50-day EMA (red) at $0.4971 are additional support areas to watch.
For investors considering XRP versus Cardano (ADA), it may be wise to choose XRP, as historical data shows that XRP has consistently outperformed ADA over the past year.
The XRP community is eagerly anticipating a victory celebration later this month as Ripple commemorates its win against the SEC in July. During the event, Ripple is expected to make several announcements, including the possibility of an IPO and a potential settlement with the agency to avoid a trial. It is anticipated that XRP’s price will perform well during and after the “Proper Party” on September 29.