XRP Breakout Signals New Bull Run May Be Underway

Ripple's XRP has increased by 3% in the past 24 hours, thanks to a new wave of optimism in the broader cryptocurrency market.

Although the increase seems modest, the fundamental technical indicators suggest that the price increase of the XRP token may continue. This analysis contains specific details.

XRP Breaks Through Important Resistance Level—Technical Indicators Show Potential for Continued Growth

XRP has successfully broken through a descending trend line, surpassing an important resistance level that has limited its upward momentum since the end of April. This move signals a trend reversal and puts XRP in a favorable position for further price increases.

XRP's Relative Strength Index (RSI) supports this price increase prospect. At the time of writing, this momentum indicator is at 54.11, showing a steady increase.

The RSI measures whether an asset is overbought or oversold. It oscillates from 0 to 100, with values above 70 typically indicating overbought conditions that could lead to a price drop. Conversely, values below 30 suggest the asset is oversold and may be about to recover.

At 54.11 and rising, XRP's RSI indicates increasing buying pressure. It also suggests the potential for additional gains before the token becomes overbought.

Similarly, XRP's Balance of Power (BoP) index currently has a positive value at the time of writing, emphasizing the price increase trend for this altcoin. It is currently at 0.86.

The BoP index measures the strength of buying pressure compared to selling pressure in an asset's market. When it increases like this, buyers dominate the spot market. This indicates a potential price increase trend for the XRP token and suggests that its momentum may continue.

XRP Price Targets $2.50 After Breakout

XRP is currently firmly positioned on the descending trend line at $2.21. If demand increases and the breakout gains additional momentum, it could push the token's price past the resistance level at $2.29.

A successful breakout beyond this price level could drive XRP up to $2.50.

However, if buying stalls and XRP cannot retest the breakout line, it may drop to $1.99.