XRP, the native token of Ripple, has sparked fresh optimism among analysts, with predictions of a potential rally to $5.85. Crypto analyst Dark Defender highlights a key technical breakout above the $2.22 resistance level, signaling a possible uptrend for XRP. The token is now eyeing the $3.40 resistance, and if it clears this hurdle, the rally could accelerate toward the $5.85 mark, a price point previously acting as a strong barrier.
A crucial technical indicator, the Golden Cross on the Relative Strength Index (RSI), has further fueled bullish sentiment. This pattern indicates that buying momentum is gaining traction, and XRP may continue to rise as a result. XRP has already posted a 17% weekly gain, showing investor confidence in its potential despite ongoing challenges.
Challenges and Risks: Exchange Inflows and Selling Pressure
However, there are concerns that could slow XRP’s rally. Exchange inflows have risen sharply, with nearly $13 million worth of XRP being deposited onto exchanges. This influx could trigger selling pressure and hinder upward movement. Additionally, the Open Interest-Weighted Funding Rate has dropped from 0.0103% to -0.0022%, indicating increased selling activity that could weigh on the token.
Despite these factors, XRP has managed to remain resilient. It is currently trading at $2.61, up nearly 5% in the past day, and continues to gain attention in the crypto community, particularly as Ripple’s legal battles unfold. If the broader market maintains its positive momentum, XRP could see more significant gains in the near future.
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