The large rally earlier this week by XRP seemed to be just a flash, as Ripple's token has now retreated below important psychological resistance at $ 0.3, which opens the door for a more bearish rally. more in the short term.
However, it is important to note that the token's current weak signals mainly stem from a market-wide slump - which was caused by Bitcoin's $ 10,000 drop.
However, as the plummet of the cryptocurrency market subsided, a leading trader emphasized that XRP could witness a massive rally - pushing the price to nearly 100%, and that was driven. by growing technical power.
XRP plummeted below $ 0.3 when the bears took control
At the time of writing, XRP is trading more than 10% down at its current price of $ 0.28 - marking a major retreat from the daily high near $ 0.33.
The world's third largest cryptocurrency is currently in the process of eliminating most of the gains made in the recent rally - which led to a peak of nearly $ 0.36, with the inability to find stability. Around this price action.
Nik Patel - a famous trader, explained in one blog posts Recently, the token could surpass the resistance formed in June 2019.
“Looking at the XRP / USD pair on the weekly time frame, we can see the price broke the resistance on the trendline from June 2019 a few weeks ago with strong volume, and has now found the level of The resistance at the previous highest level was $ 0.36, ”he explained.
In order for XRP to surpass this resistance, we need to see some further momentum of Bitcoin.
Can technical power push XRP up 100%?
Patel also noted that he believes XRP will eventually see some significant upward momentum, with the medium-term goal currently existing at a high level in June 2019 of $ 0.56.
"Volume continues to rise and I'm sure with the belief that a sharp drop is to buy, with the ultimate goal of a high of $ 0.56 from June 2019," he emphasized.
He went on to explain that the cryptocurrency is currently consolidating above the 200-day moving average and that the major support protection at $ 0.27 could spark a short-term movement up to zero, 36 USD.
For XRP's $ 0.56 rally to be highly likely in the coming weeks / months, it is imperative that Bitcoin create some noticeable short-term gains.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to NewsBTC
Translated by ToiYeuBitcoin