This Fractal Suggests XRP is on the Cusp of Seeing a Parabolic Rally
XRP was able to incur some decent momentum earlier this week that sent it into the mid-$0.25 region.
Despite climbing from its recent sub-$0.20 lows, the cryptocurrency’s uptrend is still underwhelming compared to those seen by Bitcoin, Ethereum, and many of its other peers.
The lack of enthusiasm surrounding the embattled token is quite significant at the moment, and it is now struggling to surmount the heavy resistance it faces at $0.25.
Bulls did try to shatter this level yesterday, but their attempt failed and resulted in a somewhat firm rejection.
Analysts are noting that it may not be able to see any strong momentum until this crucial level is broken, which may be an arduous task for XRP’s buyers.
There is one striking fractal pattern that a popular trader recently observed that suggests it could be on the cusp of entering a parabolic uptrend.
Of course, the accuracy of fractal patterns is widely disputed, but historical precedent does suggest that this type of movement could be imminent.
XRP Struggles to Surmount Crucial Resistance as Crypto Market Consolidates
At the time of writing, XRP is trading down marginally at its current price of $0.243. This is around where it has been trading throughout the past couple of days, with bulls being unable to break the resistance at $0.25.
The strong selling pressure found at this level has stopped it from climbing on multiple occasions, leading its price to underperform Bitcoin and most other major digital assets.
Yesterday, buyers did attempt to shatter this level. After breaking and holding above it for a short amount of time, it once again dipped back to $0.24.
One analyst is now noting that he isn’t expecting XRP to see much upside in the near-term due to the resistance at this level.
“XRP / USD: One of the worst looking charts in my opinion, even though we have seen some upside over the past month this really doesn’t matter considering we are yet to break $0.25… This region needs to be taken out and flipped before you can be really bullish, LTF rejecting.”
Image Courtesy of Cactus. Chart via TradingView.
This Fractal Pattern Suggests a Parabolic Move Could be Brewing
Despite its short-term weakness, it is important to keep in mind that XRP’s price action typically moves in parabolic cycles – seeing sharp rises followed by sharp declines.
One fractal shows that the price action seen in recent months is strikingly similar to that seen against its Bitcoin trading pair in the summer months of 2017.
Image Courtesy of il Capo of Crypto. Chart via TradingView.
If this fractal plays out, XRP’s long-held downtrend could soon result in a massive upswing that allows it to recapture much of its recent losses.
Featured image from Unsplash. Charts from TradingView.