XRP has been seeing mixed price action in recent times. After seeing an explosive rally up to highs of $0.32, the cryptocurrency hit some insurmountable resistance that slowed its ascent and caused it to enter a consolidation phase.
The cryptocurrency has now been struggling to break above $0.30, and it does appear that bears have built some resistance around this price.
If buyers do surmount this level in the near-term, they then must shatter the resistance that sits around its recent highs of $0.32.
One analyst is noting that he believes XRP is currently coiling up to make a massive upside movement in the coming days and weeks.
This movement could, he claims, send the token as high as $0.93 in the near-term, with a few crucial factors supporting his theory.
He points to its breaking of a 950-day downtrend, as well as its ability to reclaim its key support, as events that suggest this type of parabolic movement is imminent.
XRP Struggles to Escape Effects of Bitcoin and Ethereum’s Weakness
At the time of writing, XRP is trading down just under 2% at its current price of $0.29.
Yesterday evening, the cryptocurrency attempted to spark a fresh uptrend when bulls pushed it up to highs of $0.31.
The visit to this level was fleeting, and almost instantly, the crypto’s price began a descent that led it down to its current price levels.
Not only is the $0.30 to $0.33 region laced with resistance, but this upwards movement also came about in tandem with drops seen by both Bitcoin and Ethereum.
The two largest cryptocurrencies have both been consolidating beneath their present resistance levels over the past week, and a test of these levels sparked a slight selloff.
This appears to be the primary cause of XRP’s rejection at $0.31.
Analyst: These Factors May Send the Token to $0.93
One popular crypto analyst explained in a recent tweet that he believes XRP is well-positioned to see a rally up towards $0.93 in the near-term.
He points to a few recent technical developments to support this theory, including the cryptocurrency’s ability to break a 950-day downtrend, reclaim a historical support level, and hover above its 200-day EMA while looking towards its BTC trading pair.
“XRP Thread: TLDR: It’s going to .93c most likely… Breaking a 950 day down trend. Price is where the 17′ bull rally took off from and just reclaimed a major historical support level all with confluence of the 200D EMA on the BTC pair. The volume is also suggesting a reversal. There is a higher low on the chart finally.”
Image Courtesy of Pentoshi. Chart via TradingView.
If XRP is to see significantly further near-term upside, Bitcoin and Ethereum both must push higher or remain stable around their current price levels.
Featured image from Unsplash.
Charts and pricing data from TradingView.
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Author: Cole Petersen