XRP shows signs of a potential price breakout, with its Stochastic RSI finally breaking a 14-month downtrend. Market analyst Big Mike highlighted this on Twitter, sharing a 1-month XRP chart that supports his analysis. The chart reveals that since July 2023, the monthly Stoch RSI had been moving under a downward trendline after hitting a peak of 87.97.
Stoch RSI Breakout Signals Recovery
The Stoch RSI peaked last July when XRP saw a rapid price spike, reclaiming $0.93 after Ripple’s summary judgment win in the SEC lawsuit. However, XRP corrected these gains, causing a decline in the monthly Stoch RSI. After bottoming out at 3.27, the indicator is now rebounding.
Related article: XRP’s Battle at $0.55: Can Key Levels Prevent Further Decline?
Despite market uncertainty, Stoch RSI has recently spiked, breaking out of the downtrend. This breakout hints at potential bullish momentum, even in volatile market conditions, which could spark a sustained rally if bulls maintain control.
The breakout also aligns with XRP entering the final leg of an Elliott Wave structure. Currently, XRP is in the fifth and final impulsive wave of this pattern, which usually follows a corrective fourth wave.
Based on Big Mike’s projection, XRP could surge to over $9, marking the top of this wave. A symmetrical triangle on the chart supports this bullish scenario. Symmetrical triangles often signal periods of consolidation followed by breakouts, and XRP approaching the apex suggests a breakout is imminent, potentially driving the price toward $9.
Strong Support Levels and Volume Profile
XRP’s volume profile shows a strong support zone between $0.20 and $0.30, providing a safety net in case of any pullback.
Related article: XRP Consolidation Pattern Suggests 5,261% Surge is Coming
If a correction follows the projected wave 5 rally, these levels could offer stability. Meanwhile, the traditional RSI reflects the prevailing market uncertainty, hovering between 47 and 55 since July last year.
A breakout could push it past 70, similar to April 2021. XRP currently trades at $0.5377, awaiting its next move.
