Crypto analyst Cryptobilbuwoo suggests the window to buy XRP might be closing as the altcoin nears a breakout point within the Donchian Channel.
Currently, the channel reveals a resistance line that XRP has consistently challenged over the past three years. However, according to Cryptobilbuwoo, this might be the last window to buy XRP before a breakout above the resistance.
The accompanying chart shows XRP’s price movements since 2014, with occasional buy and sell signals. Cryptobilbuwoo identified a trend where XRP forms downward wicks when a support level collapses, as the market overreacts and retail investors panic-sell.
Notably, this trend shows how XRP’s price might move in the short term. The chart further reveals a repeating Parabolic SAR (Stop and Reverse) pattern similar to 2017. For context, during this period, XRP saw massive growth after breaking past the Donchian Channel’s resistance line.
The Donchian Channel Resistance
Throughout the years, the Donchian Channel has identified areas of continued resistance, particularly the baseline, which XRP has struggled to breach. This resistance line appears around the $0.95 mark, which the altcoin retested last July.
XRP 1M Donchian Channel | Cryptobilbuwoo
However, buy signals also appear at some points, bolstering support levels and suggesting that a strong accumulation phase might be underway.
In 2017, XRP experienced a breakout after testing the Donchian Channel resistance multiple times. This led to a massive rally, with “Big Green Candles” indicating bullish momentum at the time. XRP eventually rallied past $3 in early 2018.
Cryptobilbuwoo pointed out similarities in the current setup. He argued that XRP might replicate its previous rally if it successfully breaks past this resistance, which currently stands at $0.95.
Major XRP Levels to Watch
Cryptobilbuwoo believes breaching the Donchian Channel baseline could trigger a sequence of green candles as seen in previous rallies.
Should a breakout occur, XRP is likely to face powerful resistance levels at various levels. The first resistance rests at the $1.95 region, marking the previous roadblock the altcoin met during its 2021 upsurge.
If XRP breaches this $1.95 resistance with a single green candle, the next bullish candlestick could target the $6.00 price level. This would mark a new all-time high. Beyond the $6 level, the next target rests on $26.60, a 5,101% spike from current levels.
Despite the optimistic outlook, there is a risk of rejection at the resistance line. XRP currently trades for $0.5114. A failure to break past the Donchian Channel baseline could trigger panic selling among retail investors. Should this occur, the first line of defense rests on the $0.5026 support.
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