- XRP may be nearing a breakout after breaking key resistance against Bitcoin.
- The Cup and Handle formation signals a potential rally for XRP/BTC.
- XRP shows strong momentum with a bullish MACD and RSI near overbought.
The XRP/BTC trading pair is showing impressive strength, signaling a potential shift in the market. A long period of consolidation may be coming to an end. Historically, XRP has shown a pattern of consolidation followed by price rallies.
After a downtrend, XRP recently broke through key resistance. This has many wondering if an upward move is about to begin.
From 2013 to 2017, XRP consolidated for 1,277 days before surging 5,492% against Bitcoin. After another long consolidation from 2017 to 2024, XRP appears poised for another breakout.
Related: XRP Rally Expected as Ripple vs SEC Case Takes New Turn
Descending Triangle and Bullish Patterns
A Descending Triangle pattern formed on the XRP/BTC chart between 2014 and 2024. This pattern, marked by lower highs and solid support around 0.00001113 BTC, often signals an upcoming breakout or breakdown.
The Cup and Handle formation, visible from 2020 to 2025, adds to the bullish outlook. This pattern, usually a continuation signal, suggests a potential rally if the trend holds. These technical factors, along with a volume increase in 2021, have made XRP a focal point for traders. It seems the token is gaining momentum for a price surge.
XRP Surges Against Bitcoin
At the time of writing, XRP is outperforming Bitcoin. While both assets declined recently, XRP’s recovery has been much stronger, with a gain of over 6% by midday on January 14th.
In contrast, Bitcoin only gained about 4%. This difference in performance suggests that XRP is gaining favor among traders and investors.
Technical Indicators Signal Continued Momentum
The Relative Strength Index (RSI) for XRP is currently at 61.62, which is in the neutral-to-slightly overbought zone. This indicates that while XRP has moved upwards, it still has room to grow before becoming truly overbought (above 70).
Moreover, the MACD is currently bullish, adding to the positive outlook. The MACD line is above the signal line, indicating upward price momentum.
Related: XRP Breakout Likely as Analysts Predict $15 by Month-End
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