XRP, the fourth largest cryptocurrency in this area, is among the worst performers in the industry. However, investors in the asset continue to hope for a repeat of the massive pumps for which Ripple is known.
Key indicators show that the asset has reached a crucial moment when a decision has to be made. It is now or never for XRP, but how will the old coin react?
Is Ripple finally ready for redemption?
Few cryptocurrencies are as polarizing as XRP. Crypto investors either love the asset or like to hate it. It's the butt of many jokes, the worst performing altcoin in recent years and has been compared to sheep manure.
Ripple managers are notoriously selling rallies, which has helped the altcoin stay in a downtrend for almost three years. In the past few weeks, it has even lost its third place in terms of market capitalization to a stable coin.
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However, the downtrend resistance has been broken in both USD and BTC trading pairs, but XRP has barely responded. A closer look at the long-term price charts of the asset shows that the indicators are prepared for an important step.
After a breakout in downtrend resistance, bullish charting and indicators support a possible explosion – how will Ripple react in the coming days?
XRP is now or never moving according to three key indicators
There is no denying that XRP has come to a now or never. Close consolidation is due, indicators for technical analysis indicate.
Encountering strong signals from a variety of popular trading instruments is breaking out of the downtrend resistance. The downtrend resistance acts as the top trend line for a massive, multi-year falling wedge pattern.
The falling wedge pattern is a cookie cutter fractal from the previous cycle, only larger in comparison. And due to the larger size of the pattern, the resulting breakout could be all the more significant.
Ripple MACD Weekly | Source: TradingView
The weekly MACD indicates a possible breakout. The last time the MACD became bullish on the histogram in weekly periods, all bets on bears were closed.
Related Reading The price development of XRP amazingly reflects that of sheep manure
XRP gained over 3,000% in less than 60 days after the change in momentum.
Ripple RSI Weekly | Source: TradingView
Another evidence of the idea of an upside breakout is massive bullish divergence in the Relative Strength Index. This indicator also corresponds to the same type of pattern before the last time it broke out.
Another indicator, the Bollinger Bands, shows only one line of defense that separates XRP from another incredible surge: the middle of the BB. The center line of the Bollinger bands is a simple moving average, and each band is a standard deviation of these bands.
Ripple Bollinger Bands Weekly | Source: TradingView
The table above shows months before XRP claims the center line, months of "squeezing" the bands before the powerful explosion. The same thing happens again and the asset is just below the centerline of the Bitcoin trading pair.
If the asset can reclaim and hold the line, it is the only remaining step before XRP may start a shocking rally.