XRP is attempting to break through a potentially bearish pattern, and should it succeed, the path towards a new all-time high (ATH) could be paved.
The currently observed pattern, though typically seen as bearish, could present a recovery opportunity. This potential bounce back is contingent upon the active participation of long-term holders (LTHs) in supporting the altcoin.
Recent data indicates an increase in the Mean Coin Age (MCA), suggesting that long-term holders are retaining their positions. This trend reflects their optimism in XRP's future prospects. The steadfastness of these investors is vital for any potential price recovery, as they often form the core support of a cryptocurrency.
The decision by LTHs to maintain their holdings implies a positive outlook for XRP. This confidence could be a catalyst for driving the cryptocurrency towards a new ATH, given sustained support through the current market phase.
The broader technical indicators for XRP are showing bullish potential, especially with the Ichimoku Cloud analysis. The trading activity above the cloud indicates a positive sentiment that could sustain XRP’s upward momentum. If this trend holds, it may push XRP to breach key resistance levels, further increasing prospects for a significant rally.
Presently, the Ichimoku Cloud analysis suggests a favorable trajectory for XRP, supporting expectations for an upward price movement. This aligns with the outlook of XRP potentially achieving a breakout and establishing a new ATH.
Currently trading at $2.67, XRP aims to establish $2.70 as a stable support level, which would validate the ascending wedge pattern. Despite its customary bearish implications, the pattern provides XRP with ample scope for upward movement before considering any major correction.
Should XRP maintain support at $2.70, it could surpass the existing resistance of $3.40, marking a new high for the altcoin. However, securing $2.95 as a strong support level is essential for sustaining this rally, an outcome that seems probable given the prevailing market sentiment and technical signals.
Failure to hold the $2.70 support could result in a fallback to $2.33, which would undermine the bullish outlook and disrupt the current pattern. Such a scenario might delay the potential for setting a new ATH.