XRP may be preparing for a major breakout, with several analysts pointing to a $4 target. The token continues to trade just below a descending trendline, acting as strong overhead resistance.
Analyst says volume and momentum will determine XRP price’s push beyond key resistance levels.
XRP price is testing key resistance at the descending trendline, with several analysts now setting a $4 price target.
As the token continues to trade just a few cents above the Fib. support at $2.0, several analysts are keeping a close eye on the potential for a major breakout.
The analysis from TradingView analyst ONE1iMPImpact focuses on the importance of volume in confirming any breakout.
"Volume must confirm any breakout. Otherwise, we risk a fakeout and trap scenario. Ideally, we want to see above-average volume on the breakout candle."
If the volume is lower than usual, it could indicate weakness, and the breakout might fail quickly. However, high volume would signify strong buying pressure, increasing the chances of a sustained rally.
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