XRP Breaking This Key Multi-Year Level Could Spark a Massive Rally
XRP has been moving in close tandem with Bitcoin and Ethereum in recent times, struggling to garner any independent momentum.
This correlation exposed it to downside last week, before throwing it into a bout of prolonged consolidation.
The cryptocurrency’s price is now hovering around $0.29, which is around where it has been trading throughout the past several weeks.
This does mark a slight climb from recent lows of $0.27 that were set earlier this week, but the crypto is still struggling to garner any clear momentum in the near-term.
That being said, one analyst is now noting that XRP is on the cusp of confirming key historical resistance level as support.
If successfully flipped into support, he believes the crypto could soon see a parabolic surge that sends its price rocketing up towards $0.475 in the near-term.
XRP Remains Stuck Beneath $0.30 as Selling Pressure Ramps Up
At the time of writing, XRP is trading up just over 1% at its current price of $0.28. This is around where it has been trading throughout the past week, as both its buyers and sellers have reached an impasse.
This lack of momentum is primarily rooted in the lackluster price action seen by both Bitcoin and Ethereum, which have been consolidating throughout the past few weeks.
It is important to note that XRP remains highly correlated to these assets, so whether or not it can push higher may depend on where they trend in the near-term.
This may bode well for the cryptocurrency, as both BTC and ETH are showing some signs of strength today.
While Bitcoin sees a slow ascent towards its key $12,000 resistance, Ethereum was able to garner a massive influx of buying pressure that sent it surging past $400. If it stabilizes above this level, it may create a tailwind that lifts Bitcoin – and XRP – higher in the days ahead.
This Key Level Could Spark a Rally Towards $0.475
One analyst explained that he is watching for XRP to see a parabolic rally up towards $0.475 in the near-term.
He believes that this movement will come about as a result of a strong flip of $0.28 into support – as this level was previously strong resistance for the crypto.
If established as strong support over an extended period, it could act as a springboard to send XRP flying higher.
“XRP: Still consolidating around this ever so important S/R that dates back 3 years. Ultimately expecting this to move up over the next few months at it’s own pace. Eyes on .475 in the coming weeks.”
Image Courtesy of Pentoshi. Chart via TradingView.
For this possibility to come to fruition, XRP must be guided higher in the near-term by both Bitcoin and Ethereum.
Featured image from Unsplash. Chart via TradingView.