In a recent tweet, crypto enthusiast CoinsKid shared an XRP/BTC weekly chart, hinting at a potentially significant price movement for XRP against Bitcoin.
CoinsKid noted a “weekly bullish divergence” in the chart, suggesting that XRP might be gearing up for a substantial price pump.
In technical analysis, a bullish divergence typically occurs when price trends downwards while momentum indicators like the Relative Strength Index (RSI) trend upwards, often signaling a potential reversal.
XRP Price Chart Breakdown
In the attached chart, XRP/BTC has been in a downward trend for an extended period, moving towards support levels around the 0.0000620 and 0.0000440 BTC range.
Meanwhile, the RSI diverged from the price action, suggesting increasing momentum even as the price declined. This divergence between RSI and price action could indicate that the downtrend is weakening, potentially setting up the token for a reversal.
Another aspect highlighted by CoinsKid was Bitcoin’s approach to the 1.414 Fibonacci level and USDT (Tether) dominance nearing a target. Both factors could play a crucial role in the token’s potential breakout, as Bitcoin’s behavior around Fibonacci levels can impact the broader crypto market.
If Bitcoin faces resistance and loses momentum, it could shift market attention to altcoins, including XRP, providing the latter an opportunity to rise in BTC value.
We could be about to witness one of the biggest pumps we have seen for #xrp in years!!
Weekly Bullish Divergence #xrp/#btc #bitcoin running into the 1.414 fib.#usdt dominance hitting our target.
Hold on tight here $4 and new all-time highs could… pic.twitter.com/DRJTiEPoBb
— CoinsKid (@Coins_Kid) November 12, 2024
Community Reactions and Regulatory Considerations
CoinsKid’s tweet attracted massive reactions, with various users sharing their thoughts on XRP’s potential price movements.
Notably, X user Puppeteer pointed out that XRP’s future trajectory is likely dependent on regulatory developments, especially given Ripple’s ongoing legal issues with the U.S. Securities and Exchange Commission (SEC).
Ripple’s legal case has been a significant factor in XRP’s market performance, and any regulatory clarity might fuel the token’s price action further. Puppeteer emphasized that positive legal outcomes for Ripple could catalyze XRP’s price to break out.
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Another user, JJNZ, expressed a more cautious view, suggesting that XRP might not experience a major run until after the SEC’s appeal is resolved, potentially in early 2025. This user also speculated that the launch of RLUSD (Ripple’s new liquidity-focused asset) could influence the digital asset’s performance.
The comment also reflects a sentiment among long-term XRP holders that technical analysis alone may not fully apply to XRP due to ongoing regulatory uncertainties and market complexities tied to Ripple’s operations.
Technical Analysis and Potential Price Targets
Analyzing the chart further, the support levels around 0.0000620 and 0.0000440 BTC may provide a foundation for XRP to bounce if buying momentum builds. If the token follows through on the bullish divergence signal, a potential recovery could see it testing higher resistance levels.
CoinsKid’s tweet suggests optimism for a significant price pump, possibly eyeing a target as high as $4 and potentially new all-time highs for XRP.
For XRP to reach these levels, several factors need to be aligned. These include sustained buying momentum from the recent bullish divergence, broader market support—particularly if Bitcoin and Ethereum stabilize or pull back—and favorable regulatory outcomes in Ripple’s ongoing SEC case, which could boost market confidence.
Given the significant role of regulatory clarity in XRP’s price potential, as emphasized by community members like Puppeteer, Ripple’s progress in its legal battles could be critical to any forthcoming rally.
Positive developments could draw institutional interest, improve liquidity, and provide a solid foundation for XRP’s new highs.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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