XRP is once again testing the downtrend line that it has been following for more than 7 months. Stationed at the November 2024 levels, the coin should rebound based on historic data breaking above the 7-month downtrend line.
Since last July, XRP has been crashing. From reaching values above $3, the coin crashed throughout the past 7 months and is currently priced at $1.40. Along the coin’s descent, it tested and broke the downtrend line a few times during this period. However, the bulls were not able to keep the prices above the trendline as the macroeconomic factors weighed heavily on the crypto market.
Geopolitical tensions and other factors did not give XRP a chance to sustain above the trendline. Now that the coin is at 2024 November levels, it is at a significant juncture.
If history repeats itself, XRP will target $2.5
The chart below shows that the coin rallied after it broke above the $1.4 price level. If history repeats, the coin has the potential to once again gain value and rise above $2.50. This means that the 7-month-long downtrend will come to an end. But will it?
On the technical front, the Relative Strength Index (RSI) indicator shows approximately 40, a value very similar to during November 2024, which supplements the case for a reciprocation. And that’s not it; the RSI also shows a bullish divergence. The RSI is making higher highs while XRP is making lower highs. This shows that the bullish momentum is building beneath the surface.
Bullish momentum build beneath the surface
As XRP quietly builds momentum, there will be a threshold point when it will break above this level. On top of that, the fixed volume range indicator shows that there is a lot of buying and selling happening in this region. This is because traders anticipate the XRP price to go parabolic.
So the bottom line is the RSI is at similar levels as it was back in November 2024, and it is also showing a bullish divergence, which suggests that there is momentum building. And traders who spot these shifts know that this is a price range to be geared up for.
