XRP, the native cryptocurrency of the Ripple network, has finally overcome a long-term resistance line that has been holding it back since April 2021. This breakout, according to a prominent analyst, could pave the way for a massive 576% rally to $3.3.
XRP’s Long-Term Resistance
XRP has been trading below a downward trendline that started from its peak of $1.96 in April 2021. This trendline has acted as a barrier to any bullish attempts by XRP, rejecting its price repeatedly in the past year.
In September and November 2021, XRP tried to break above this trendline but failed to sustain the momentum. It also made another attempt in March 2021, reaching a high of $0.5850, but was pushed back down by the sellers.
The downtrend continued throughout 2022, with XRP showing no signs of breaking out. However, the situation changed in the last week of May 2021, when XRP closed the week with an impressive 11.18% surge.
This surge was enough to breach the downtrend and confirm a bullish breakout finally.
XRP’s Bullish Cup Pattern
The formation of a cup pattern on the weekly charts also accompanied the bullish breakout of XRP.
According to Dark Defender, the analyst who first spotted this pattern, XRP is now forming the handle of a cup, which is the final stage preceding a potential price explosion.
He noted that this pattern has been forming for up to 777 days, making it one of the longest cup patterns in crypto history. Dark Defender also pointed out that XRP could still drop to the $0.40 level before resuming its uptrend.
However, he assured that this would not invalidate the bullish scenario. He said that the initial price target for XRP in the upcoming rally is $0.8917, followed by $1.7396 and ultimately $3.3.
A price of $3.3 would mark a 576% increase from XRP’s current value. He predicted that this rally would start in August.
XRP’s Challenges and Opportunities
XRP’s rally comes amid a challenging environment for the cryptocurrency and its parent company Ripple.
Ripple is facing a lawsuit from the US Securities and Exchange Commission (SEC), which accuses it of selling unregistered securities in the form of XRP tokens.
The lawsuit has caused many exchanges and platforms to delist or suspend XRP trading, affecting its liquidity and market access.
However, Ripple has responded with legal motions and public statements, claiming that XRP is not a security and that the SEC’s actions harm millions of innocent investors.
Despite the legal uncertainty, XRP has managed to rebound and regain its footing in the crypto market. It has also received support from loyal partners and communities, such as Flare Network, Uphold, and SBI Holdings.
Moreover, XRP has benefited from the general recovery of the crypto market in 2021, driven by institutional adoption, innovation, and regulation.
XRP has also maintained its relevance as a fast and cheap payment option for cross-border transactions.
On the weekly charts, XRP has broken out of a long-term downtrend and formed a bullish cup pattern. According to an analyst, this could signal a massive 576% rally to $3.3 in the near future.
