The price of Ripple (XRP) has reached a new annual high and may continue to rise.
On March 21, Ripple price broke above the descending resistance line and formed a large bullish engulfing candle. After a short-term fall, the asset continued its upward movement and on March 29 reached a new annual high of $0.585. The rise was also coupled with the RSI’s break above 50, confirming its legitimacy.
Now XRP is in the process of confirming the $0.535 resistance area as support. If successful, further growth can be expected. However, if the price of the asset closes below this area on the daily time frame, the most likely scenario would be a fall to $0.43.
Ripple is trying to break out of a critical resistance area
The price of XRP rose significantly in March and is currently forming its fourth consecutive bullish candle. At the moment, the asset is trading inside the long-term resistance area of $0.565. This level is considered critical as Ripple has not been able to break above it since May 2022.
Fixing above this area could lead to a bounce to the next resistance at $0.925, which is 66% higher than the current price. The upside opportunity is supported by the weekly RSI, which has risen above 50.
The XRP price rally was also affected by a number of positive news. On March 21, Messari founder Ryan Selkis said that he believes the Ripple Labs v. Securities and Exchange Commission (SEC) case is overkill on the part of the latter, and he expects a positive decision in favor of the former.
In conclusion, it should be noted that a break of the XRP price above $0.565 could trigger a rise to $0.925. However, an unsuccessful attempt to consolidate above this level will be the catalyst for a fall to $0.430.
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