XRP Breaks Out: Why Is There Rejection At $0.74?

XRP is within a bullish formation, but the failure of buyers to extend gains should worry optimistic traders

Written by: Dalmas Ngetich • Wednesday, March 13, 2024 • 1 min read

• Last updated: Wednesday, March 13, 2024

XRP is within a bullish formation, but the failure of buyers to extend gains should worry optimistic traders. The breakout on March 11 was with high trading volume, but prices ended up ranging inside the bull bar on March 12. Technically, this is bullish, but there must be a follow-through for confirmation.

XRP is steady on the past day but up 13% in the previous week. This signals strength despite the resistance for sharp higher highs. The coin’s market cap is also flat at over $37 billion. However, trading volume in the past day has shrunk by 57% to around $3.2 billion. This contraction could mean traders are exiting and adopting a wait-and-see approach.

XRP daily price chart for March 13

Though the bull market is evident, XRP might see more tailwinds due to fundamental factors. Some of them include:

XRP Ledger and automated market maker development: Developers want to create a means for holders to supply liquidity and earn rewards via yield whenever they participate. This is bullish overall for XRP as it will lock up supply, possibly lifting prices.
Ripple versus United States Securities and Exchange (SEC) lawsuit: Attention is on the upcoming opening brief deadline in the protracted case pitting the blockchain company and the strict regulator. What transpires then will likely impact prices.

XRP Price Analysis

Currently, XRP/USD bulls are upbeat, expecting more price gains.

However, bulls have been slow to push higher, finding resistance at March 10 highs. Even so, since prices are inside the bull bar, the current formation favors buyers from an effort-versus-result perspective.

In the short-term, resistance is at $0.74, while support lies at $0.66—a key resistance in the previous range. As prices oscillate inside the March 10 bull bar, aggressive traders can look to add on dips, targeting $0.84 and later $0.93.

Conversely, opportunities can exist above $0.74 when this level is comprehensively broken.