History Suggests XRP Could Soon Rally Over 30%, But Macro Weakness Remains
XRP has incurred some notable momentum throughout the past 24 hours, but it has been struggling to surmount the crucial resistance that sits between $0.24 and $0.25.
The cryptocurrency’s upswing seen today came about as a result of a bull pennant break. Still, the slowing momentum seen following this positive technical development does seem to spell some trouble for where it trends next.
Analysts are now widely noting that the cryptocurrency does appear to be at a make or break level.
One important factor to consider is that it was recently able to surmount its 200-day EMA. In the past, XRP has rallied an average of 33% once this crucial level is broken above.
That being said, the tempered momentum seen in the time since this level was been broken suggests that it may not provide the embattled token with the same type of sharp upwards movements seen in past months.
XRP Pushes Against Heavy Resistance Following Technical Breakout
At the time of writing, XRP is trading up just under 4% at its current price of $0.24. This marks a notable climb from daily lows of $0.21 that were set yesterday.
This latest push higher appears to have been driven by a recent bull break out of a rising wedge that had been forming.
One analyst had spoken about this breakout yesterday afternoon when it occurred, saying:
“XRP (USDT) accelerating. Bull break off this rising wedge.”
Image Courtesy of Big Cheds. Chart via TradingView.
Despite the positive nature of this breakout rally, it is essential to note that the cryptocurrency’s momentum began stalling once it reached the mid-$0.24 region.
This price action also comes as the embattled token trades against a backdrop of immense bullishness across the aggregated cryptocurrency market.
Both Bitcoin and the vast majority of altcoins are currently caught within strong uptrends, but it doesn’t appear that the tailwind created by these uptrends will be enough to lift XRP higher.
If History Rhymes, It Could Be Gearing Up for a 30%+ Surge
Despite its lackluster price action seen over the past couple of days and weeks, its tempered uptrend may start accelerating.
Another analyst recently explained that the token’s break above its 200-day EMA was a significant development that signals further upside is imminent.
Historically, breaks above this level lead its price to surge by 33%.
“XRP only really ramps up the pumps when it’s above the Daily 200EMA. Both of the last major moves really kickstarted once this was achieved. Past pumps average 33% so if we look at the same for this move we land right up against the hugely significant weekly resistance.”
Image Courtesy of Cold Blooded Shiller. Chart via TradingView.
How it trends in the coming days should offer insight into whether or not this is a realistic possibility.
Featured image from Unsplash. Charts from TradingView.