Ripple’s XRP Retest $0.6044 Barrier; Is a Breakout Next?

The cryptocurrency XRP has drawn renewed interest as it revisits the $0.6044 resistance level for the second time in recent days. With significant market movement during the past week, the token is showing signs that a potential breakout could be on the horizon. As indicators signal growing optimism, many traders are closely watching for a possible upward trend in the near term.

XRP Targets $0.6044 Again

After a slight dip yesterday, the altcoin is preparing for another retest of its resistance level, with many believing it may occur within the next day or two. Current momentum indicators, such as the relative strength index, sit at 55.02, suggesting room for further upward movement before the market becomes overbought.

Adding to this positive outlook, the Chaikin Money Flow index remains strong at 0.21, indicating healthy money inflow into the digital currency. As long as this influx of capital persists, it could serve as the driving force behind further price increases, possibly leading to the much-anticipated breakout.

On-Chain Data Supports XRP Accumulation

Another indicator of growing confidence is the increased XRP accumulation among traders. Data from CoinGlass shows the OI-weighted funding rate for the cryptocurrency has climbed by 0.0073%. This rise reflects traders’ willingness to maintain long positions, even at a premium, demonstrating their optimism about the asset’s future.

Additionally, the altcoin’s futures open interest has grown by 1.72% in the last 24 hours, reaching $744.85 million. This increase signals heightened activity and further supports the belief in XRP’s market potential, indicating that traders are increasingly bullish on its short-term prospects.

Is a Breakout Above $0.6044 Next?

Despite the overall positive signals, XRP has experienced a minor price decline. According to CoinMarketCap data, the token currently trades at $0.5858, reflecting a 0.30% drop over the past 24 hours.

Moreover, its market cap has dipped to $33,061,644,427. Meanwhile, the increase in trading volume, which surged by 12.02% to $996,046,337, suggests heightened interest and activity in the market despite the short-term price decline.

While XRP has experienced this slight decrease, the market remains bullish. If this positive sentiment continues, the cryptocurrency could break above $0.6044 and target the $0.6700 resistance level. However, if sentiment shifts, support levels at $0.5500 and $0.5200 could be tested, leading to further downward movement by the end of the week.

Also Read: Daily Crypto Update: Bitcoin Eyeing $64k as Market Recovers