XRP, Buoyed by Middle East Optimism, Breaks $1.54 Resistance: Will a Full-Fledged Rally Begin?

▲ Ripple (XRP) ©Go Da-sol

XRP (Ripple) is building solid bullish momentum, breaking through major resistance levels and aiming for an additional rise of over 6%, buoyed by the easing of geopolitical tensions in the Middle East and positive indicators in the derivatives market.

According to investment media FXStreet on April 22 (local time), XRP is showing a strong trend, pressing the short-term resistance level of $1.45 as global market volatility subsides with the extension of the ceasefire between the U.S. and Iran. Since the ceasefire came into effect on April 8, XRP has risen by 8.5%, demonstrating its benefit from geopolitical stability. While the Crypto Fear & Greed Index remains in the 'Fear' stage at 32 as of Wednesday, it has been steadily recovering from 23 last week and the 'Extreme Fear' stage of 8 in March, suggesting improved investor sentiment and a gradual increase in risk asset preference.

Expectations for a bullish market are also rising in the derivatives market. As of Wednesday, the Open Interest weighted funding rate recorded an average of 0.0066%, showing a positive trend. According to CoinGlass data, the perpetual futures indicator has consistently remained in positive territory since April 3, confirming that traders are gradually increasing their long positions (buy).

This means that buyers are confident of significant future price increases and are willing to pay premium fees. The moderate funding rate of 0.0066% indicates that the retail trader market is not excessively overheated or euphoric, but has healthy room for stable further upward movement.

Technical analysis indicators also support the upward trend. Currently trading above $1.44, XRP's Relative Strength Index (RSI) on the daily chart is around 58, indicating positive but not overly extended buying pressure. Additionally, the Moving Average Convergence Divergence (MACD) histogram hovers above the zero line, maintaining a strong buy signal and adding strength to the short-term bullish momentum.

To initiate a full-fledged rally, it is essential to overcome the 100-day Exponential Moving Average (EMA) resistance at $1.54, which is approximately 6% higher than the current price. Successfully breaking this level could significantly extend the gains to the long-term downtrend line near $1.68 and further to the 200-day EMA at $1.78. Conversely, if the short-term defense line of the 50-day EMA at $1.41 is breached, the current positive sentiment could reverse, and the risk of facing a deeper correction within a broader bearish structure cannot be ruled out.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*