XRP Prominent members of the community expressed their disappointment after the price failed to break the $0.6 resistance level. On the other hand, although Ripple has obtained legal clarity in its ongoing case with the SEC, the price of the native token seems to be a little far from its desired levels. According to some people in the community, the main reason for this poor price performance is the company’s large sales in secondary markets.
As we reported as Koinfinans.com Ripple It releases 1 billion XRP tokens into the market at the beginning of each month. The company re-transfers 800 million tokens to escrow wallets, while the remaining 200 million tokens are released.
However, regardless of whether Ripple halts its monthly selloff or not, three key details stand out that show how XRP could potentially break the $0.6 resistance level.
According to the charts, the token stuck between the 50-day and 100-day EMAs can make an upward move by taking advantage of the underlying strength of these EMAs.
In particular, the 50-day EMA has consistently provided strong support and the XRP price has bounced from this line several times. This consistency means there is strong buyer interest in the token. This interest could help the price surpass the $0.6 resistance level if each rebound weakens the overhead resistance.
The XRP chart shows a symmetrical triangle formation as well as a descending triangle. These two trends suggest that the token may be preparing for a decisive move. The most important point to note here is where the converging lines meet.
The combination of an increase in volume and a major breakout could push XRP beyond the $0.6 resistance level. Interestingly, as the sixth-largest cryptocurrency by market cap approaches the symmetrical triangle, the probability of a breakout increases significantly.
XRP has a history of breaking through key resistance levels during recovery. Cryptocurrency may repeat the same pattern in current market dynamics.