Recent technical indicators suggest a bullish outlook for XRP as it aligns closely with Bitcoin’s performance. With a correlation of 0.91 between the two cryptocurrencies, traders are optimistic about XRP’s potential price surge, particularly given Bitcoin’s current stability around $110,000.
Strong Correlation with Bitcoin Boosts XRP
The impressive 0.91 correlation between XRP and Bitcoin highlights a compelling trend: XRP tends to rise when Bitcoin does. This correlation is especially notable as Bitcoin attempts to surpass its historical high.
Historically, XRP has mirrored Bitcoin’s trends, particularly during strong bullish cycles. When this correlation weakens, XRP typically underperforms. However, the current rise in correlation is seen by traders as a potentially bullish signal.
With Bitcoin stabilizing near the $110,000 mark, market observers note that when BTC is strong at key levels, altcoins like XRP often see increases in price and trading volume. This creates a conducive environment for XRP to maintain its bullish momentum, especially if Bitcoin continues to test higher resistance levels above $110,000.
RSI Supports a Bullish Trend for XRP
A key indicator reflecting positive momentum for XRP is the Relative Strength Index (RSI), which currently remains above the neutral level of 50. This suggests an increase in buying activity, with bulls maintaining control over the asset.
If the RSI continues to rise, XRP may gain the strength needed to challenge higher resistance zones. Momentum traders are likely paying close attention to this trend, as the RSI above the midpoint indicates sustained interest in the token from both retail and institutional investors.
The technical setup appears to favor buyers, as the RSI has remained in an upward range for several days. This upward pressure could catalyze a new movement in the altcoin’s price.
XRP Stabilizes Above Support and Targets New Resistance
Currently trading at $2.33, XRP has managed to stay above the crucial support level of $2.27, essential for maintaining its bullish configuration. If XRP can maintain this position, the next objective would be resistance at $2.38, a level that previously acted as a solid ceiling.
A break above $2.38, followed by a successful test as support, could propel XRP towards $2.50, significantly strengthening its bullish trend. However, failing to defend the $2.27 level may lead to short-term weakness, with significant declines targeted at $2.20 and $2.13—levels below which the recent bullish trend risks being completely invalidated.
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