XRP rocketed higher by nearly 100% last week, and is up 8% on the day today following last week’s ruling, revealing the asset is not a security.
The recent surge to the upside has pushed momentum through a six-year long resistance line, according to the quarterly Relative Strength Index. Will such a high timeframe breakout lead to further upside? Or will this rally fail to produce new highs, much like in 2020?
The Cryptocurrency Market Begins To Turn A Corner, Sharply
Sentiment across the cryptocurrency market remains bearish overall, but a glimmer of hope arrived last week when a US judge ruled that retail sales of XRP was not the sales of unregistered securities, as the US SEC had claimed.
The news immediately dispelled the negativity hanging over XRP and several other coins who were caught in the SEC’s enforcement crosshairs. These altcoins include Solana, Polygon, and others, each adding more than 20-30% in price since the landmark legal decision.
But few crypto assets rallied as hard as Ripple’s coin, which saw an almost immediate doubling in price. After some profit taking, price settled at around 75 cents per XRP. Today it’s already trading at nearly nine cents more, currently around 84 cents on the dollar.
The six-year 3M RSI downtrend is broken | XRPUSD on TradingView.com
XRP Quarterly RSI Momentum Burst Out From Downtrend Line
The massive move in XRP caused a major breakout in long term momentum, according to the quarterly Relative Strength Index. With a six-year-long downtrend resistance trend line on the RSI out of the way, it could be clear skies for the cryptocurrency.
High timeframes such as the 3-month candle provide more dominant signals, hinting at substantial strength and buying pressure. These dominant signals overpower any daily or weekly signals, for example.
The next step necessary to keep XRP rising higher unrelentingly, is to take out the 2020 and 2021 highs on the 3M RSI. A higher high on the RSI is a significant buy signal, especially when this occurs after reaching oversold conditions.
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My custom Raging Bull indicator has lit up on the quarterly #XRP chart for the first time in over 2,000 days (~6 years)
It is based on the Relative Strength Index, which is breaking out of 3M RSI downtrend resistance pic.twitter.com/g7T9fcjPV7
— Tony “The Bull” (@tonythebullBTC) July 19, 2023
Credit: Source link
