XRP bulls may need to wait longer for a breakthrough to occur. In May, the cryptocurrency broke the key support level of $0.39. With the support area breached, the same level was also positioned as a key resistance.
The XRP price also formed a range between $0.30 and $0.41, with the midpoint set at $0.36, which serves as both a resistance and support area.
XRP Bull Market Losing Steam?
In May, XRP attempted to break above the $0.30 level for two consecutive weeks. However, the bulls have lost momentum, leading to the price falling below the midpoint of the range. A few days later, the price further dropped to the $0.35 level.
According to data from CoinMarketCap at the time of writing, the XRP price has fallen by 1.3%, trading at $0.3548.
The token’s technical indicators show a sudden reversal of bearish signals. The RSI has climbed above 50 and turned this level into a support, indicating a potential strong bullish trend in the coming days.
Furthermore, the Accumulation/Distribution (A/D) line successfully broke the key resistance level from May, which is a significant development at the moment.
Read more: What to expect for Bitcoin (BTC) in 2021?
However, such developments may not confirm a further breakthrough above the $0.39 level. On the other hand, this suggests that a breakthrough is possible and could happen within the next few weeks.
Increased demand for XRP indicates bullish positions
The sudden surge in demand for cryptocurrencies suggests that the bulls may have taken the lead. However, a breakthrough of key resistance levels may take some time to occur.
In addition to the SEC issues, the challenge lies in breaking the resistance line that has been steady since January 2021.
XRP has tested this resistance area multiple times without success but is determined to test it again. Breaking through the resistance area will certainly help propel XRP towards the next target of $1.
