- Ripple price sits at a key confluence support level of $0.586, hinting at a potential breakout rally.
- The structure of XRP’s recent price action is similar to meme coin consolidation, often leading to an explosive surge.
- A breakdown of the weekly support level at $0.586 will invalidate the bullish thesis.
Ripple (XRP) price has breached a key hurdle into a support floor while tightly consolidating for roughly 250 days. As this range resolves, investors can expect XRP to kickstart a massive up move, similar to what many meme coins have undergone. Shiba Inu coin is the best example – SHIB recently shot up roughly 350% after its multi-month consolidation.
Read more: Why a slow descent for Shiba Inu is likely after 355% rally
Ripple price has been in a tight consolidative range for more than 250 days. This development has resulted in two key outcomes – a breakout above a declining trend line and a flip of the $0.586 resistance level into a support floor.
Currently, Ripple price continues to hover above $0.586, indicating another range formation. The weekly Relative Strength Index (RSI) has recovered after briefly dipping below the mean level of 50, hinting that the buyers are still in control. The Awesome Oscillator (AO) hovers above the zero level, suggesting that the bullish momentum is dominating.
These technical outlooks hint that Ripple price is primed for an explosive move to $0.920, which is roughly 50% away from the current level of $0.617.
Also read: XRP holders lose interest, shed holdings as Ripple and SEC seal lawsuit proceedings
XRP/USDT 1-week chart
While all signs point to a potential bullish outlook for Ripple price, investors need to be cautious of Bitcoin price. If BTC continues its descent to $59,000, chances are altcoins will go down with it.
In such a case, Ripple price could crash 22% to the next key support level at $0.481.
