- XRP has formed an ascending pattern last seen in June 2022.
- The altcoin had set its sights on targeting $0.72 at press time.
The price of Ripple [XRP] increased to $0.58 on the 8th of January. But according to analyst Ali Martinez, the rise could be the start of a movement to $1.10. According to Martinez, XRP had formed an ascending pattern last seen in June 2022.
He also added that if the rising parallel channel continues, XRP might hit $0.80 at the middle boundary, while noting that the upper boundary above $1 was not out of reach.
From this perspective, the governing pattern behind #XRP price action since June 2022 appears to be an ascending parallel channel.
If this pattern continues, $XRP could make its way toward the channel’s middle or upper boundaries, which currently sit at $0.80 and $1.10,… pic.twitter.com/kCKHEFZQWe
— Ali (@ali_charts) January 8, 2024
$1 is possible, but it’s not the time yet
Martinez’s opinion could bring some relief to XRP holders. For a long period, holders of the cryptocurrency had hoped that the token would realize its much-talked-about potential. However, XRP has not found it easy to trade above the cents level.
The last time it came close to $1 was in 2023 during Ripple’s partial win over the U.S. SEC. Despite the recent price prediction, XRP could not hit $0.6. At press time, AMBCrypto figured that the price had dropped to $0.56.
In terms of Open Interest (OI), Coinglass data showed that the value had dropped to $485.19 million. The OI increases or decreases based on net open positions.
When the OI increases, it means that on net balance, market participants are increasing their positioning. It also means buyers are more aggressive than sellers.
So, the decrease in OI signifies that sellers were more combative, and this could dump XPR into the $0.55 support.
Source: Coinglass
XRP targets $0.72 for a start
From the XRP/USD daily chart, the 0.236 Fibonacci level was at $0.55. This Fib level signifies possible pullback points. So, the position meant that the 0.236 agrees with the OI indications that a dump toward the support is likely in the short term.
Another look at the Fib showed that the 3.618 level was at $1.06. This indicates that if XRP surpasses its December high of $0.69 at some point, it could rise to $0.72.
Furthermore, AMBCrypto evaluated the Exponential Moving Average (EMA). At press time, the 50 EMA (blue) had crossed over the 200 EMA (yellow), indicating that XRP’s trend might be bullish in the long term.
However, the short term looks a little gloomy for the cryptocurrency. This was because of the Relative Strength Index (RSI), which was 39.07 at press time.
Source: TradingView
The RSI reading was a sign of weakness in buying momentum. So, unless buyers return in full strength, XRP might not retest $0.58 anytime soon.
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Irrespective of the predictions, it is important to note that XRP’s value would depend on other factors besides technical perspective. Ripple has a pending case with the U.S. SEC, whose outcome may affect the price.
However, the notion that 2024 would be a bull market has given XRP a high chance of hitting the said value.