For the first time since Ripple’s victory in July, the price of XRP has broken above a resistance line. This means that XRP has the potential for three different outcomes.
In July, XRP had a big increase in value after Ripple won a major case against the SEC. However, in the following weeks, XRP faced a lot of selling pressure and its price dropped below a descending resistance line. After reaching $0.90 following the SEC win, XRP lost all its gains and fell to $0.45 on September 11.
On September 18, XRP’s price recovered and went above the $0.5000 resistance level. This is the first time since July that XRP is trading above the descending resistance line.
Currently, the price of XRP is $0.5032, slightly above the resistance level. In the last 24 hours, XRP has gained 0.73% and over the last seven days, it has gained 6.31%.
However, there are three possible scenarios that could happen in the coming days if XRP doesn’t break above this resistance level.
The $0.5000 price level is an important support/resistance level for XRP. If this level is flipped, it could start a major rally for XRP. But for this to happen, XRP’s price needs to stay above $0.5000.
If $0.5000 becomes a resistance level, XRP could experience a short-term rally. The target for this rally is $0.55 before potentially going as high as $0.7000. A popular XRP trader, @UniverseTwenty, has predicted that XRP could reach $1 if the bullish conditions continue.
If bears regain control of the XRP market and a pattern called the death cross is completed, XRP could enter a major bear market for the rest of September. The death cross happens when the 21 exponential moving average falls below the 200 EMA. If this happens, a crypto chartist named EGRAG has predicted a decline to $0.4300.
If XRP fails to turn the $0.5000 resistance into a support level, it could go back to trading within its consolidation range. Since the beginning of September, XRP has been trading between $0.4700 and $0.5000. However, with the current high volume of XRP, this is the least likely scenario.
Breaking above $0.5000 puts XRP at a crossroads with no clear direction. The sentiment of the broader crypto market will play a role in determining whether XRP bulls or bears take control.