Following positive sentiment in Bitcoin, XRP has seen upward momentum as of late. Based on historical price action, XRP is now approaching key resistance levels that could tell us a lot going into year-end. Based on current technical analysis, what price barrier does XRP need to break to get bulls in full control?
XRP, the fourth largest digital asset by market cap, has gained ~ 3% over the last week. Ripple’s native digital asset is looking for momentum going into year-end and is still down -2.3% over the last year. With Bitcoin experiencing ~ 81% growth over the last year, XRP is significantly underperforming. During the last week, here is how XRP has stacked up against other large-cap digital assets:
- Bitcoin: +2.4%
- Ethereum: 1.1%
- XRP: +3.0%
- Chainlink: +3.1%
- Bitcoin Cash: -0.5%
- Litecoin: +0.10%
- Binance Coin: -4.0%
XRP Technical Analysis
Back in early October, it was outlined that XRP was struggling to close above $0.24 levels. It was believed that if XRP could do so, then the digital asset could build up some positive momentum. Since then, we have seen this play out as XRP accepted $0.24 and has now put in strong support at those levels.
XRP price now enters an important level based on its historical price action. If we look at the chart closely, we can see that XRP is attempting to power its way through $0.27 resistance. Over the last year, there have only been two other scenarios where XRP was able to do so. The first attempt was in early February. After doing so, XRP then rallied to its yearly highs around $0.34. The next time it occurred was in late July. Many traders thought this could be a catalyst to retest yearly highs, but the rally fell short. We now enter mid-November in which XRP is attempting to surpass key resistance for the third time.
Given the bullish sentiment in crypto right now, XRP has a chance to shatter $0.27 resistance and re-test yearly highs by the end of the year. With XRP still lacking fundamental use cases in the U.S due to on-going regulatory concerns, it will continue to feed off Bitcoin in the short-term. Bitcoin got a head start over the last month with its ~ 40% growth. Many altcoins like XRP underperformed during this time, but they are expected to recapture some BTC gains in the short-term.
Despite XRP looking bullish right now if it can power through $0.27 resistance, traders will also be looking to manage downside risk. With this being said, investors will most likely be bullish on XRP price unless it rejects support around $0.238. Rejecting that support could cause some heavy downside pressure.
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