XRP to $3.40 This Week. What do the Charts Say?

XRP is trading at $2.70 at the time of writing, following its rebound at $2.60. Currently almost 2% up from its opening price, the asset is having one of its best starts to the week. 

Nonetheless, a look at the 1-day chart shows the altcoin has been in an uptrend since last week. A green close at the current price will result in its fifth consecutive day of increases. 

The latest run began on Thursday and progressed into Friday. However, the upward momentum picked up during this period, causing an almost 5% increase. While the surge aligned with the market’s general sentiment, XRP received an extra boost from fundamentals. 

Ripple announced its acquisition of Hidden Road on Oct 24. Brad Garlinghouse expressed his excitement over the purchase. He stated that the new name (Ripple Prime), then added that the latest company marks Ripple’s fifth purchase in its bid to “build solutions toward an internet of value.”

However, Garlinghouse last statement spurred massive support. He said, “I’m reminding you all that XRP sits at the center of everything Ripple does. Lock in.” The coin has since been on the uptrend, even when the sentiment across the market was slightly bearish. 

XRP gained over 13% in the last five days and is gearing up for more. However, it may retrace before surging.

XRP May Retest $2.50

The dominant trend over the past almost two months has been notable declines on Tuesdays, and depending on the size of the Monday uptick, XRP may retest the low. 

Last week, the altcoin gained over 4% on the first day but lost more than 5% over the next two days. A similar action played out two weeks ago when the coin gained over 3% on Monday but retraced, losing almost 8% before rebounding.

If the trend continues, XRP may experience a trend reversal within the next 24 hours. Given the pattern of erasing all gains on Tuesday, the coin may retrace to below $2.60 and retest $250. However, recovery may start on Wednesday.

Is $3.40 Possible This Week?

A closer look at the chart reveals several bullish indicators that may suggest further increases in the coming days. One such is the moving average convergence divergence. It displayed a bullish crossover on Saturday, indicating bullish dominance after weeks of significant decline.

Previous divergences led to an average of 13%. However, already up 13%, XRP will surge higher. A closer look at MACD shows that several bullish crossovers hit a brick wall around 0.01 and 0.02. The metric is at -0.05, showing more room for further uptrends.

Prices will see equal momentum, cruising past resistance. Since breaking above its 14-day high at $2.65, its next price target is $3. Nevertheless, it may experience slight rejections at $2.80. The bollinger bands suggest that this may be the case, as the upper band may be a sell wall before a breakout.

Aside from the BB, the fibonacci retracement level indicates an even higher surge. XRP is currently trading near the 61% fib mark. It may break above the barrier in the coming days, surging as high as the 23% level at $3.30.

However, the chances of this happening are low, but previous price movements support a retest of the $3 mark. 

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