The Ripple price is higher by +10% in weekend trading to $1.5400. XRP has broken out, and the chart suggests more gains to follow.
XRP has been on a tear since Wednesday’s sell-off. The Ripple price has increased 33% from the $1.1643 low and is currently breaking out of a downtrend. This move has the potential to send XRP back to the May high at $1.7695 and beyond.
XRP has managed to shrug off concerns over an ongoing SEC investigation to enjoy somewhat of a renaissance in 2021. The Ripple price has instead taken cues from a boom in the wider crypto market. Secondly, news that Ripple Labs CEO Brad Garlinghouse is exploring an Initial Public Offering has also boosted confidence in the coin.
At the 14th of April high of $1.9695, The ripple price had increased by 775% since the start of the year. Although the price has slipped from that peak, it has still returned 585% to holders so far in 2021.
If the current breakout can gain momentum, there is a good chance that XRP can increase its already impressive returns.
XRP Technical Outlook
On the 4-hour chart, we can see that yesterday’s 6% rally took the price above an ascending trend line. The trend at $1.4230, from the 6th of May, has been a previous good level of resistance.
In my opinion, the price action following has been supportive. After the price cleared the trend, it extended higher to $1.6485 before returning to the previous breakout level.
Considering the Ripple price held the trend line on this dip, I would suggest the previous resistance level now becomes support.
If the price trades higher through $1.6485, we should see another run at $1.795 and quite possibly the 2021 high of $1.9565.
Should the Ripple price trade back below $1.4230, this would negate the immediate bullish outlook.