XRP price has experienced a strong rally since early November and the digital asset is inching closer to its yearly high. A few days back, it was outlined that XRP needed to accept key resistance levels to increase its chances of retesting yearly highs. After doing so shortly after, what price levels will traders keep an eye on for the rest of this week?
XRP Price
At the time of this report, XRP is currently trading around $0.29157. The fourth-largest digital asset by market cap has seen ~ 15.7% growth over the last week, which is similar to BTC price action ( ~ 17% ). During the last week – Bitcoin, XRP, and Litecoin have been top performers across large-cap digital assets. Here is how they stack up against others over the last 7 days:
- Bitcoin: +17.7%
- Ethereum: +5.8%
- XRP: +15.2%
- Chainlink: +3.5%
- Litecoin: +24.4%
- Bitcoin Cash: -4%
- Polkadot: +6.4%
- Binance Coin: -0.7%
- Cardano: +0.2%
XRP Price Progression
In a report on November 14th, it was outlined that the XRP price was approaching an important level around $0.27. At the time, this was a level that XRP had only tested a few times throughout the year. The first attempt was in February, in which XRP ended up putting in yearly highs around $0.34. Many traders thought that XRP would re-test yearly highs in July when it powered through $0.27 resistance again, but the rally was much weaker than expected.
If we fast forward to this month, XRP price was attempting to break $0.27 resistance for the third time. We believed there was a good chance of this happening, mostly relating to the positive momentum behind Bitcoin right now. Following that theory, XRP ended up powering through the resistance, which raised the chances of yearly highs being retested. What important levels will traders now be watching closely?
XRP Technical Analysis
As discussed above, with XRP breaking $0.27 resistance for the third time this year, it increases the chances of the digital asset re-testing yearly highs in the short-term. Similar to the $0.27 regions being significant based on historical price action, the $0.295 levels are equally important. On the chart below, we have outlined $0.295 resistance levels in yellow throughout the year.
This level has been equally important over the last year. $0.27 and $0.295 have been strong resistance levels that have ultimately determined strong price moves one way or the other. This is why traders will be keeping an eye on $0.295 levels this week. If XRP starts to close below $0.29, you could very well see a minor correction. Based on strong upward momentum since early November, XRP has entered “overbought” territories according to RSI. These levels in RSI have historically resulted in corrections, which is why traders will be watching $0.295 levels closely. Elevated RSI is outlined at the bottom of the chart in yellow. If XRP can not hold $0.295, many would argue that the digital asset could retest support at $0.268 in the near-term.
On the flip side, as long as XRP does not drop below $0.268, sentiment should continue to be bullish. Based on price this month, a minor correction before another leg up would be normal in terms of price action. As long as $0.268 is not rejected, we still believe that XRP will re-test yearly highs in the short-term.
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