Analyst: XRP a “Powder Keg” That is Bound to Incur Explosive Rally
XRP has been stuck beneath its long-established resistance level of $0.30 for the past several weeks despite the explosive rally that Bitcoin and other major cryptocurrencies incurred yesterday.
Despite XRP’s lackluster price action over the past few days, it has been able to put some significant distance between its current prices and its recent lows of $0.24, and one prominent analyst is noting that an “explosive” movement could be imminent in the near-future.
At the time of writing, XRP is trading down just under 2% at its current price of $0.294, which marks a slight drop from its daily highs of just over $0.31 that were set yesterday concurrently with the peak of the rallies experienced by Bitcoin and other major cryptocurrencies.
XRP has recovered slightly from its daily lows within the mid-$0.28 region, although it has not been able to match the positive price action experienced by Bitcoin, as it is currently trading down roughly 5% against its BTC trading pair.
Although altcoins do appear to be correlated to Bitcoin presently, there is a decent sized chance that this correlation could break if BTC is to incur another explosive rally like the once seen yesterday, where it surged from lows of $7,400 to highs of nearly $10,600.
XRP was not able to incur a rally of anywhere near this magnitude yesterday, but analysts do believe that it could be gearing up for an explosive rally that sends it surging to fresh multi-month highs.
“Uhh $xrp is a powder keg here… when this pops, it’s going into the heavens ngl,” he explained in a recent tweet while referencing a few technical formations seen in the chart below.
In the near-term, it appears that there are two catalysts that could spark this type of upwards movement, with the first being overwhelming Bitcoin bullishness that spills over into major altcoins like XRP, and the second being Ripple’s upcoming Swell conference, where some positive news surrounding the company’s XRP-related products could be announced.
It is most probable that it will ultimately be a combination of bullishness in the aggregated crypto markets and positive news surrounding XRP’s utility that will fuel its next rally.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.