Analyst: Big breakout in Ripple price (XRP) in sight

In brief

• The price of XRP has been fluctuating and was last trading at around $0.57 after a significant decline and partial recovery.
• Analysts are predicting a possible breakout, with some targeting a short-term rise to $0.65.

What could happen next for XRP?

The last few weeks were more than Turbulence for Ripple’s XRP. Its price was well above $0.60 at the beginning of the month before crashing to as low as $0.43 on August 5 (in the wake of the general collapse of the crypto market). This happened on on this day).

However, three days later, XRP was back on the upswing, crossing the $0.63 mark following a major development in Ripple’s legal battle with the SEC. Judge Torres ruled that the company must pay a $125 million fine for violating certain securities laws, a 94% reduction from the regulator’s original $2 billion demand.

XRP could not hold the Momentum, and in the following days it fell below $0.60. Currently it is trading at around $0.57 (per CoinGeckos data), an increase of 25% on a two-week scale.

Some analysts remain optimistic that a renewed recovery is possible. Crypto Rover – an X user with over 800,000 followers – claims that XRP is “preparing for a major breakout.” He explained The Forecast of the possible crossing of the asset’s uptrend and downtrend lines. The meeting point is usually a harbinger of a violent movement in some direction.

CRYPTOWZRD also added his two cents, arguing that the XRP chart remains “overall positive.” The analyst expects a short-term rally to the resistance level of $0.65, which will later be followed through further upward pressure.

What does the RSI indicate?

An important metric that measures the price change and speed of XRP is the Relative Strength Index (RSI). It varies from 0 to 100 and shows whether the token is overbought or oversold.

A ratio above 70 indicates that XRP is in the overbought zone, which means a price correction could be imminent. Currently, the RSI is around 60, exceeding the aforementioned zone only once in the last 20 days.

It is worth noting that the ratio fell below 20 in early July when the XRP price was hovering around $0.39. Shortly after, the asset saw a significant recovery and ended the month at almost $0.66.