- XRP has broken out of a key descending channel, a bullish technical signal
- The move was fueled by the launch of the new EVM-compatible sidechain on the XRPL
- Analysts are now watching for a push toward a short-term price target of $2.40
Most XRP community members believe the cryptocurrency is pointing to a classic technical breakout that has been further fueled by a major fundamental development. The recent surge also pushed XRP above a key descending channel, a move that one analyst believes is the start of a push toward a short-term price target of $2.40.
The crypto user presented his XRP analysis on X using a section of the XRP/USD daily chart on TradingView.
Related: 3 Big Reasons Why XRP Could Surge in July
The screenshot he shared consists of two regions comprising a minor and major channel. XRP has broken above the minor channel, signaling a potential upsurge. The analyst expects the cryptocurrency to break above the major channel, which reflects a bullish falling flag, and confirms the push towards higher prices.
The fundamental catalyst to drive XRP momentum
Data from TradingView shows that XRP surged to $2.3274 on Monday after the XRP Ledger (XRPL) launched its EVM-compatible sidechain on the mainnet. For context, the sidechain is a major technological upgrade that allows developers to build and deploy Ethereum-style smart contracts on the XRPL.
Typically, such fundamental developments lead to increased adoption of the affected protocol and its associated cryptocurrency. They become more crucial when aligning with technical setups that support a bullish trend, as seen with XRP at the time of writing. The XRP chart reflects a significant bullish moment amid extended accumulation. That is why many analysts expect the breakout to become a landmark event that will trigger a notable rally.
Related: All Eyes on XRP Ledger as It Finally Gets Ethereum Compatibility
XRP traded for $2.2093 at the time of writing, marking a 4.97% pullback from Monday’s daily high. However, the price remains above the crucial $2.2 support and outside the minor channel spotted by the analyst. Remaining above this level will improve XRP’s bullish sentiment and boost users’ confidence. That could be the trigger the digital asset needs to achieve the projected $2.4 short-term target.
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