At the moment, XRP price is contained within a descending channel, a technical pattern that suggests an impending bullish breakout.
Experts are predicting that XRP can jump back to $3.66 if it breaks out of this channel.
This potential move is based on rising buy pressure, which is expanding XRP near crucial resistance levels.
Descending Channel and Bullish Breakout
The formation of a descending channel suggests that the XRP needs to find the support level for the upsurge.
In the past, similar patterns have seen significant price increases once an upper limit is crossed.
Captain Faibik predicts XRP price to overcome this resistance as technical charts show that it is expected to go up.
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Additionally, increasing buy pressure is one of the factors that are driving the current XRP price up.
However, a recent analysis shows XRP price nearing $2.18 marks a critical Fibonacci retracement and support zone, signaling the completion of subwave three.
Analysts note the symmetrical triangle pattern could lead to a breakout toward $3.50. The bullish flag is normally considered in the category of continuation patterns.
It occurs when a cryptocurrency is in the corrective or trading range and indicates that a strong upside move is expected shortly.
Technical Analysis Points to $3.66 Target
According to the technical indicators, the key level to watch out for after a breakout of XRP price is $3.66.
The stochastic RSI and RSI on the 3-day timeframe also support this target, as both show buy signals of clear upward strength.
For the positive outlook for XRP, there must be an utmost trading volume and an effective breakout above the $2.50 price barrier.
If this happens, it will extend the bullish formation, and the altcoin price might shoot above the $3 level.
Moreover, the moving average convergence divergence (MACD) shows bullish momentum, as the MACD line crosses above the signal line.
The histogram confirms increasing buying pressure, reflecting positive sentiment.
Outlook for XRP Price
Currently, XRP price is stabilizing near the resistance levels, and investors are patiently waiting for a breakout.
Technical analysis of the token’s charts and rising buy pressure make XRP ready for a breakout and climb above $3.
At press time, XRP is trading at $2.58, reflecting a 9.63% surge in the last 24 hours with a $148.21 billion market cap.
The $7 billion 24-hour trading volume and increasing momentum support the bullish projections, indicating strong investor confidence as XRP approaches critical resistance levels.
