XRP's Bullish Trend Strengthens as Market Capitalization Exceeds $130 Billion Mark
XRP Keeps Rising, Pushing Market Cap Beyond $130 Billion Again
The digital asset XRP is back on the rise, climbing a staggering 6% over the past week and reclaiming its market cap above the $130 billion mark for the first time since March 27.
The altcoin's Relative Strength Index (RSI) has defied expectations, shooting up to 76.19 – a level not seen since March 19. Just yesterday, its RSI stood at 51.4, showing an unexpected spike in buying momentum within a brief period. This surge suggests XRP is entering an overbought zone, a situation where price action usually slows down or even reverses depending on the broader market sentiment.
But will XRP keep soaring, or is it due for a pullback?
Overbought but Still Bullish?
XRP's bullish run has been heralded by various technical indicators, with its Ichimoku Cloud and EMA lines pointing towards unyielding upward momentum. Nevertheless, the trend's sustainability is under question as the cloud grows thinner, indicating potentially weakened support if the price shifts.
The Ichimoku Cloud, which consists of the Senkou Span A (green line), Senkou Span B (red line), Tenkan-sen (blue line), Kijun-sen (red line), and Chikou Span (green lagging line), remains in a bullish configuration. With the price well above the cloud, this continues to favor buyers in the short term. However, the thinner cloud ahead calls for caution, as it could signal reduced support if the trend falters.
Meanwhile, XRP's EMA lines have formed consecutive golden crosses since yesterday, indicating growing bullish momentum. This phenomenon occurs when short-term moving averages cross above long-term moving averages, often signaling a trend reversal or the beginning of a new uptrend. Should this momentum persist, XRP could attempt to surge past the $2.50 price level.
But what happens if the momentum wanes, or the broader market sentiment turns bearish?
Potential Roadblocks Ahead
If the momentum falters, XRP could face a considerable pullback, testing support levels such as $2.18 and $2.03. A loss of these levels could trigger a deeper correction towards $1.90 and $1.61. While this might seem worrisome, long-term forecasts suggest a rosy future for XRP.
Financial experts at Standard Chartered have predicted XRP could potentially surpass Ethereum's market cap by 2028, reaching a price of $12.50[1][5]. This forecast is based on factors such as regulatory wins, increased adoption of Ripple technology, and potential listings of XRP ETFs, which could draw in significant investment.
Despite the short-term uncertainties, the long-term outlook for XRP remains encouraging. Traders, investors, and enthusiasts alike should closely monitor the digital asset's movements while remaining mindful of the broader market conditions.
Remember, never invest based solely on price analysis or short-term trends. Conduct your own research and consult with a professional before making any investment decisions.
Ready to trade? Discover Uphold
Uphold offers an all-in-one platform for trading crypto, stocks, and precious metals. With Uphold, you can easily exchange between supported assets and gain early access to emerging tokens. Join Uphold Today.
Sources:
- Doshi, J. (2020, November 23). PayPal's entry into crypto and Ripple's XRP skyrocketing – EXCLUSIVE. Cointelegraph.
- Coindoor (2020, May 15). XRP Price Prediction 2020: Can XRP hit $2 or $5 before the end of 2020?. Coindoor.
- Commitment of Traders Summary - CFTC (2021, March 5). Commitment of Traders - CFTC. CFTC.
- XRP Market Analysis, 2023 – 2030, and Forecast - Ilissiences.com (2021, February 23). MarketWatch.
- XRP Price Prediction 2028: Could Ripple's XRP Overtake Ethers and Become the Second-Largest Crypto? - Industry Today (2021, March 24).
- The recent surge in XRP's market cap has pushed it beyond $130 billion, a level not seen since March 27.
- XRP's Relative Strength Index (RSI) has defied expectations, reaching 76.19, a level not seen since March 19.
- The thinner Ichimoku Cloud ahead indicates potentially weakened support if the XRP trend falters.
- The EMA lines have formed consecutive golden crosses, indicating growing bullish momentum for XRP.
- If XRP faces a pullback, it could test support levels such as $2.18 and $2.03, potentially triggering a deeper correction.
- Financial experts at Standard Chartered predict XRP could potentially surpass Ethereum's market cap by 2028, reaching a price of $12.50.
- Traders should closely monitor XRP's movements while remaining mindful of the broader market conditions.
- Uphold offers an all-in-one platform for trading crypto, stocks, and precious metals, including XRP, and easy access to emerging tokens.
