This Simple Chart Observation Says XRP’s Price May Soon Burst Higher
Like it or not, XRP hasn’t fared too well over the past few years. Since its blow-off top in January of 2018, during which the cryptocurrency traded above $3.00, the price of XRP has crashed, falling to $0.24 where it is now and as low as $0.17. That represents an over 90% drop from the all-time high.
Even in 2019, when Bitcoin gained over 90%, the popular altcoin tanked by 50% against the U.S. dollar, failing to break the steep downtrend it was caught in.
But, analysts say that Bitcoin may soon surge higher, citing a number of key technical factors that suggest XRP is ready to regain some strength.
XRP Is Preparing To See Surge, Analysts Suggest
Analyst Credible Crypto — who called Bitcoin’s rally into the $8,000s in the middle of December near the bottom, when everyone said BTC was poised to go to the $5,000s — recently posted the two below charts of XRP and BTC.
He showed that there are clear similarities in XRP’s price action since January 2018 and that of Bitcoin in February 2019. BTC was trading in a falling wedge, marked by two retests of resistance and two retests of support, then a final breakout above the wedge.
XRP has traded in an eerily similar pattern, seeing those two retests of resistance and two retests of support and the breakout, yet prices have yet to rally as Bitcoin did.
XRP’s following Bitcoin’s exact trajectory will mean that one more dip is inbound, and it will also mean that the price of the altcoin will explode higher after said dip, likely above $0.30 and beyond.
— Credible Crypto (@CredibleCrypto) February 1, 2020
Not to mention, other factors suggest the cryptocurrency may soon rally against the dollar and Bitcoin.
Trader Galaxy noted that XRP is “looking ready” to rally 20% or so higher towards $0.28, drawing attention to the existence of a clear uptrend and the fact that the asset has flipped a number of key resistances into supports, boding well for the bullish case.
Also, another trader pointed out that XRP has finally started to decisively break out of a falling wedge pattern that has constrained price action for the past seven months. The cryptocurrency has also surmounted a key horizontal resistance that has been important on a macro basis.
With this in mind, he suggested in the below chart that he expects for XRP to target the 0.382 Fibonacci Retracement of the entire falling wedge over the coming weeks, which suggests a 25% rally to $0.30 is on the horizon.