- XRP price reveals potential for a 75% rally should the crypto markets turn around.
- However, a breakdown of the $0.324 support floor could result in a steep 25% correction.
- Investors can make an informed decision based on how Ripple reacts to the 2022 volume point of control at $0.324.
XRP price shows a tight consolidation that could potentially indicate an explosive move in the making. Correctly identifying the direction and timing of the breakout could result in massive gains for investors.
Let’s take a look at the potential outcomes and how to prepare for them.
XRP price prepares for an explosive breakout
XRP price, on a 1-day chart, shows that it is hovering just above the 2022 volume point of control (POC), aka the highest volume traded level, at $0.324. It has been doing that for roughly two months.
Even before the consolidation below the $0.381 level and above the POC at $0.324, XRP price was ranging between May 11 and June 10 below $0.450.
However, looking at the volume profile for 2022 reveals that there is sparse volume up to $0.595 or roughly $0.600. Hence, a breakout is more inclined to move to the upside, especially if bulls can manage to overcome the $0.389 to $0.377 support area.
This development could allow XRP price to move straight to $0.50, where another resistance barrier is present. Overcoming the aforementioned level will have enough momentum to push the altcoin higher and reach its upside target at roughly $0.60.
In total, this move would constitute a 75% gain from the current position at $0.324.
XRP/USDT 1-day chart
While the above scenario makes sense, investors need to consider the possibility of a drawdown. A breakdown of the 2022 volume POC at $0.324 would be an extremely bearish development for the remittance token.
In such a case, XRP price could crash 25% to $0.231, which is the only stable footing to absorb the incoming selling pressure. Therefore, if investors manage to long XRP price from the current position, it would result in a trade with high risk and a higher reward.
The confirmation of a bullish trade will occur if Bitcoin price sweeps the $20,750 support level or manages to stay above the $20,000 psychological level. In this case, market participants can open a long position for XRP price.
However, if Bitcoin price flips the $19,000 support level into a resistance barrier, it will indicate that things are gearing for a steep correction. In such a situation, XRP price could crash by 25% to $0.231.
