XRP has entered a bullish period, judging by the strong possibility of a breakout. On Monday, the cryptocurrency kicked off the week with a 2.96% boost to $2.10. After an extremely choppy past month, its short-term technical setup is now suggesting signs of a strong comeback. A number of technical indicators point to increasing demand and a likely retest of powerful resistance levels.

Technical Indicators Point to Growing Demand

XRP’s relative strength index (RSI) is back up to 50.77 indicating higher bullish momentum. The RSI is a measure of momentum and overbought/oversold conditions, and a sustained move above the neutral 50 level just about always suggests an expansion of demand.

XRP long/short ratio Long/short ratio for XRP has surged to 1.07 amid the shift in positioning. This ratio’s turn is of huge significance, as a greater amount of traders are wagering on the upward trend in price.

XRP’s Bollinger bandwidth, a measure of volatility, on the 4-hour chart has contracted to its tightest width since October 2022. The last time bandwidth compressed this hard was days before the 2022 FTX collapse.

Market Sentiment and Potential Price Movements

Bitcoin’s run above $87,000 on Monday contributed to positive momentum across the crypto market, giving XRP even more tailwinds. Should the bullish momentum hold, XRP may likely retest the crucial $2.18 resistance barrier within the next few sessions.

Alternatively, if bulls do not successfully hold the rally, XRP might retreat back to $2.03 support or potentially $1.99 support. As noted above, XRP in general has been on the upswing lately. Nonetheless, it remains 2.24% in the red over the past week and has declined 11.78% over the past month.

The resurgence of bullish sentiment is noteworthy. In the past, when XRP’s technical setup has duplicated the present scenario, it has planned an explosive breakout rally.