Lorenzo Stroe
Independent Analyst
- XRP is trading at $0.252 after a significant breakout above a descending parallel channel on the daily chart.
- Bulls are only facing one last crucial resistance level before a price explosion to $0.30.
XRP is finally showing signs of recovery after a massive breakout from an important pattern formed on the daily channel. Several technical indicators are showing that XRP could be poised to hit $0.30 in the short-term.
Will the price of XRP conquer the last barrier before $0.30?
If we look at the daily chart, we can observe a notable breakout from the descending parallel channel on October 4. Additionally, the price of XRP also climbed above the 100-SMA, turning it into a support level.
XRP/USD daily chart
-637375010922499530.png)
Furthermore, XRP is seeing continuation on October 5 but faces the resistance level at $0.256 at the 50-SMA. This is the last crucial barrier for the digital asset before reaching $0.30. Bulls need to turn this level into support.
On the shorter time-frames like the 4-hour chart, the 50-SMA, and the 100-SMA, were both turned into support levels and had a bull cross.
XRP/USD 4-hour chart
-637375011049540165.png)
The MACD also turned bullish, showing a lot of strength like on September 24 when XRP rallied by more than 10% within the next week.
XRP Holders Distribution Chart
 [15.14.35, 05 Oct, 2020]-637375011189404025.png)
However, despite the renewed bullish strength, it seems that the number of whales is decreasing. According to the Holders Distribution chart by Santiment, there are three fewer holders with at least 10,000,000 XRP coins from October 1 to now.
If investors are selling despite the bullish breakout, the chances of XRP getting rejected from the daily 50-SMA are higher. A significant rejection will most likely drop the digital asset towards the 100-SMA to re-test it as a support level.
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