While Bitcoin has been at the forefront of the recent uptrend in the digital currency market, XRP has remained stagnant. Now, however, a technical indicator indicates that the Altcoin will soon experience explosive growth.
To Report Crypto-briefing, XRP has already gone through a one-month stabilization period and forced the Bollinger Bands to tighten in the daily chart.
Many analysts believe that the compression of the compression phases often results in high levels of oscillation. In fact, the longer the compaction period, the more severe the potential breakout will occur.
However, the inability of this indicator to provide the exact direction of the XRP token has led to the formation of a No-trade Zone between the upper and lower bands. Breaking the upside resistance at $ 0.26 or relying on the support level at $ 0.23 could determine the next move of XRP in the price chart.
Despite the great ambiguity of the XRP chart, the Parabolic SAR indicator indicates a possible rise in the fortunes of buyers.
This indicator, which is one of the indicators following the trend, shows that the downtrend that started on August 4 (August 14) is now depreciated. In fact, with the stop and return points below the price of Ripple or XRP on November 5 (November 14), the probability of a breakout (breaking important levels) has greatly increased.
Based on historical data, the stop and return system is very efficient in estimating XRP trends on the day chart. Over the last two times, the XRP price has risen 61% and 30%, respectively, as the Parabolic SAR indicator changed rapidly from bearish to bullish.
It is now possible that something similar is about to happen.
By calculating the correction of the Fibonacci index from $ 0.35 in February to $ 0.114 in March, it can be seen that $ 0.26 is a key resistance level that should not be overlooked. Here the 38.2% Fibonacci level converges with the upper Bollinger Bands, adding a layer of power to the level.
The only uptrend that allows XRP to turn $ 0.26 resistance into support could push the token to the 23.6% Fibonacci level at $ 0.29.
On the other hand, a downward swing that could push the XRP price below the $ 0.23 support level is likely to hurt the upside.
By crossing this barrier, we will probably see an increase in sales orders and a decrease in prices. If that happens, the XRP is unlikely to fall to the Fibonacci level of 61.8% at $ 0.195.