The XRP news today show that the native cryptocurrency by Ripple has room to grow a lot more and appears to have retraced in a quick period of time. Now, Ripple’s token is back below its key psychological resistance at $0.30 in a market breakdown which occurred overnight.
This opened the gates for further short-term bearishness and according to many, could trigger the price of XRP to move downwards. However, there are still analysts who are optimistic about XRP’s trajectory and believe that Ripple has room to double in the future as its technical strength grows.
All of this was sparked by the Bitcoin news initially, which showed that BTC went below $10,000. Once the dust settles from the recent drop, however, we could see a massive rally and see how Ripple has room to double. This could be fueled by growing technical strength, too.
At the time of writing, the XRP token is trading down by 10% at the current price of $0.29 which marks a massive retrace from its daily highs set at $0.33. The cryptocurrency is also in the process of shedding the majority of the gains which were incurred during its recent rally that led it to highs of around $0.36, with its inability to find stability around this price action which spelled trouble for what comes next.
One prominent trader named Nik Patel wrote a blog post in which he explained how the token was able to break above a trendline resistance – also explaining why Ripple has room to grow now.
“Looking at XRP/USD on the Weekly timeframe, we can see that price broke out above trendline resistance from June 2019 a couple of weeks ago on strong volume, and has now found resistance at the prior swing-high at $0.36,” he said.
In order for the cryptocurrency to rally past this resistance, it will probably require Bitcoin to see some further momentum. Patel said that he does believe XRP will ultimately see some significant upwards momentum and set a mid-term target with highs around $0.56.
“Volume continues to rise and I am firmly of the belief that dips are for buying, with the ultimate target being the high at $0.56 from June 2019,” he noted.
Patel also explained that the cryptocurrency is right now “consolidating above its 200-day moving average” and a strong defence of its key defence at $0.27 could spark a new short-term movement to over $0.36 soon.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post