One question, top of mind of XRP owners, is when XRP will finally break out and sustain a rise to our XRP 10 USD forecasted price. It is a fact that we are very bullish XRP with findings like XRP is the most beautiful LT crypto chart as well as 2023 is a big year for silver and XRP investors. While all that is true, important and relevant, it is also true that we have qualified XRP as a long term investment. The fact that XRP’s long term chart setup is a bullish reversal is one thing, but its key characteristic remains the long term consolidation. It is nearly impossible to exactly forecast the end of a consolidation and start of a breakout. That’s why, the question is “when will XRP finally break out.” The right question to ask is rather “are you willing to wait until XRP breaks out acknowledging its consolidation is long and slow, amplifying the bullish character of its reversal.”
We look at the XRP breakout question, but equally important the XRP consolidation structure, in 3 different ways. This should give an answer to XRP holders, eager to understand if/when XRP will break out, even though the right question to ask is a different one, as outlined in the intro.
XRP long term moving average
We are no fans of moving averages, we don’t like them and don’t actively use them in our methodology simply because of their lagging nature.
However, from time to time, it might be relevant to use a moving average, especially a long term moving average, as a secondary data point.
When it comes XRP’s 200 day moving average (dma), we can clearly observe that it is rising currently. It is slowly rising, which is not a problem at all, because the more important characteristic is that it is moving up.
Moreover, as seen on the long term price chart, since 2016, XRP has a track record of moving around its 200 dma. More importantly, from time to time, XRP tends to stage a strong rally, moving up very fast, only to come back down to its 200 dma after a few months.
Conclusion: XRP is brilliant in moving higher, fast, unexpectedly, which it only does when it’s ready. For XRP holders it implies one thing: better be patient, and accept the long term nature of this holding. It also means it is fine to take some profits off the table, which we prefer to do in the form of ‘free tokens’.
XRP long term rising trendline
Another characteristic of XRP is its long term rising trendline, the one that originates from the Corona crash lows. We covered this extensively in a recent writing: XRP – The Single Most Important Trendline For 2024.
What we observe is that XRP is now consolidating between 0.44 and 0.88, with epic support right at the long term trendline.
Conclusion: XRP’s long term rising trendline acts as support, it provides a great entry area as long as the rising trendline is respected it is bullish. This viewpoint confirms the previous findings.
XRP long term rising channel
The 10-year rising channel provides another angle to come to the exact same conclusion as we discussed in the other 2 charts: the long term channel provides a structure in which XRP is moving. It is a long term channel. The importance of 0.88 as a resistance level is crystal clear on this chart pattern.
Conclusion: It seems a matter of time until XRP clears 0.88 USD, to the upside. Between now and then, XRP owners better remain patient, because the structure of this long term consolidation is bullish. So, sooner or later, the big breakout will start.
Conclusion: when will XRP break out?
Again, the right question to ask is not WHEN exactly XRP will break out. That’s because all 3 charts, featuring a completely different view and different chart patterns, confirm the bullish nature but also explosive characteristic of XRP. It is a fact that XRP as a cryptocurrency tends to stage accelerated moves in a very short period of time.
The really important question is whether XRP owners are willing to wait until the big breakout above 0.88 USD is going to happen. Between now and then, XRP owners better remain patient, because the structure of this long term consolidation is bullish. Sooner or later, the big breakout will start.
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