Why Traders Expect XRP to See an Explosive Rally Despite Stalling Uptrend
XRP has been seeing mixed price action in recent weeks. The cryptocurrency was able to post some massive gains just a couple of weeks ago, but its momentum has since stalled after it faced a firm rejection at $0.33.
From the point forward, the crypto has been drifting lower ever since, eventually tapping lows of $0.27 before finding some support.
The cryptocurrency is now starting to show some signs of life as its buyers attempt to propel it past its heavy resistance at $0.30.
This level has catalyzed multiple rejections in the past, but it is imperative that bulls surmount it in the near-term if they want to spark any further upside.
Analysts are now noting that the cryptocurrency’s recent dip led it to test a crucial support level, with today’s climb marking a bounce at this level.
This is a bullish sign that may indicate upside is imminent for XRP.
XRP Flashes Signs of Strength as Analysts Eye Upside
At the time of writing, XRP is trading up just under 1% at its current price of $0.297. This is just below its key resistance level that has been holding strong for over a week now.
Overnight, bulls did attempt to break this resistance on a couple of occasions, but each time they were met with heavy selling pressure that slowed the crypto’s ascent.
Despite not breaking above this level just yet, it is important to note that the strength of this short-term uptrend is growing, with the cryptocurrency’s multiple bounces at $0.27 suggesting that its recent lows may mark a local bottom.
While pointing to the strength of this support, one analyst explained that he “wouldn’t be betting against” the cryptocurrency at the present moment.
“Don’t know about you but I wouldn’t bet against XRP at these levels.”
Image Courtesy of Smokey. Chart via TradingView.
Analyst: Expect the Token to Gain Against Bitcoin in Coming Days
While looking towards XRP’s Bitcoin trading pair, analysts are also expecting upside.
One trader explained that he is looking for a move up towards the 3.3k sats region after it backtested its key support at 2.4k sats.
“XRP: Looking like it can move up towards 3k sats (prev range highs) and follow ETH up and majors up. Taking a deeper look on this I think most the market is sleeping on it but won’t be long. A lot of signs pointing towards a major reversal. But for now, short term targets,” he explained.
Image Courtesy of Pentoshi. Chart via TradingView.
If XRP does follow Ethereum’s lead, its price may see a major breakout while Bitcoin continues consolidating below $12,000.
Featured image from Unsplash. Charts from TradingView.