A crypto strategist on TradingView has shared an analysis predicting that XRP could witness a significant 60% price increase, reaching $4, if certain conditions align before March 17. The analysis outlines both bullish and bearish scenarios with key resistance and support levels that traders should monitor in whichever of these scenarios the altcoin goes through.
XRP Resistance Levels And Bearish Signals
XRP is currently at a point where its movement depends on how it interacts with key resistance levels. At the time of writing, XRP is going through a broader correction phase alongside the entire crypto market. In light of this, the strategist noted that the 3-day RSI needs to break above 55 to sustain an uptrend.
Furthermore, the strategist noted that XRP looks like it is trading in an ascending broadening pattern on the long timeframe, which is generally considered a bearish indicator. It suggests that while the asset has seen an upward movement, it is nearing a significant resistance zone, which could lead to a potential breakdown.
Moreover, the Full Moon indicator, which reportedly signals market downturns, printed a new mark on the chart, implying a bearish trend might continue until March 29. Any rejection at $2.48 or $2.60 after any brief upward movement here would further confirm another downside movement.
Bullish Setup For The Asset: A Strong Reversal In March?
Despite the bearish concerns, the strategist also points out several bullish indicators. The daily candle looks strong, though the analyst warns that this momentum might be short-lived beyond March 17. Notably, the 3-day candle has been bearish since January 22, and for XRP to sustain a bullish move in the second half of March, it must show clear upward strength.
One of the most crucial observations is that the altcoin recently bounced off the 50-day moving average, which is an early sign of an uptrend. The strategist also notes that the ascending broadening wedge mentioned above, while typically bearish, appears unique in this case. The market is currently undecided based on the current trajectory. Hence, the likelihood of a strong bullish move is 60%, compared to a 40% chance of a bearish scenario.
In the case of a bullish scenario, the analyst noted a price target of $4 for the altcoin. For XRP to confirm a rally toward $4, the price must break above the $2.48 and $2.60 resistance zones with significant volume. A strong rally could take it to a new all-time high of $4.00 if these levels are successfully cleared. Beyond this level, the market will enter a price discovery phase, making future movements less predictable. The analyst also humorously suggests that after reaching $4, XRP could potentially retrace back to $1.00 for a cooling-off period before its next move.
At the time of writing, XRP is trading at $3.4, up by 4.12% in the past 24 hours.
