XRP is trading at a key juncture after several days of volatile price action, prompting renewed optimism among investors. Some analysts believe XRP is on the verge of breaking out of a massive 4-year bullish triangle that has served as an extended period of accumulation.

This technical formation has been steadily developing, and now XRP looks poised for a significant expansion phase. After years of underperformance due to the ongoing SEC lawsuit and broader economic uncertainty, the market is closely watching a potential breakout. If XRP breaks through current resistance levels, many are expecting a parabolic rally, potentially leading to up-to-date highs.

Investors are eagerly awaiting confirmation of this move, viewing it as a key moment in XRP’s long-term market trajectory. As momentum builds, XRP’s next moves could determine its performance in the coming months and its role in the broader cryptocurrency market.

XRP price action suggests bullish breakout

The entire cryptocurrency market has seen a surge, with Bitcoin and many altcoins seeing double-digit price gains. This rally comes after the Federal Reserve’s recent decision to cut interest rates by 50 basis points, which has sparked optimism among investors who believe a up-to-date cryptocurrency bull market is on the horizon. XRP investors are also feeling hopeful as analysts have shared promising insights suggesting positive outcomes in this cycle.

One of the prominent cryptocurrency analysts, Carl Runfelt, shared his opinion technical analysis on Xhighlighting the bullish triangle pattern that XRP has been forming since 2020. According to Runfelt, XRP could experience explosive growth during this bullish cycle, potentially going parabolic and rising over 200% in a matter of weeks if the pattern breaks. A key level to watch is $0.60, which has acted as significant resistance in recent weeks.

If XRP breaks above this critical price point, it could trigger a wave of “fear of missing out” (FOMO), driving significant demand and pushing prices to up-to-date highs. Traders are closely watching this level, expecting a breakout that could change XRP’s trajectory for the rest of the cycle.

Key Liquidity Levels

XRP is currently trading at $0.587, a key level that could trigger a massive rally for the altcoin. After rising 15% since early September, the price is testing the 200-week moving average (MA) at $0.609 as resistance, a level that has held XRP down since April. Breaking through this barrier is imperative for bulls looking to extend the rally.

XRP has reclaimed the weekly 200 exponential moving average (EMA) at $0.52, a mighty demand zone since early July. This level will be key to sustaining the price if a correction occurs.

For XRP to continue its rally, the price needs to break through the $0.60 level and reclaim the 1W 200 MA as support. A pristine breakout of these levels would signal the potential for a larger rally and a change in market sentiment. However, failure to close above current levels could lead to more sideways consolidation or even a deeper pullback. In such a scenario, XRP could retest the weekly 200 EMA at $0.52, which could act as a critical support level.

Featured image is from Dall-E, chart is from TradingView