Earlier today, the price of Bitcoin (BTC) crashed by 7% as covered by this very outlet. Understandably, altcoins followed suit, with Ethereum, XRP, and all the rest posting losses that were similar to that of the cryptocurrency market’s leader.
Despite the drop, not all hope is lost for XRP, an analyst has posed, going as far as to say that if a key level is breached, a rapid surge up by dozens of percent can be had.
XRP Preparing For Breakout
On Saturday, cryptocurrency trader CJ posted the below charts on Twitter, showing that XRP’s chart is eerily reminiscent to that of altcoins Bitcoin Cash and Bitcoin Satoshi’s Vision prior to their latest breakouts. More specifically, he pointed out that like the Bitcoin forks prior to their rallies, the price of XRP is consolidating under a range equilibrium price point.
Should XRP break above the range equilibrium just as the altcoins did, it could also rally by over 25% in a short period of time, the analysis suggests.
With this in mind, it is logical to ask — can XRP break and close above the $0.244 resistance as indicated by CJ?
According to some, for sure.
Analyst CryptoWolf recently noted that per his earlier analysis, 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 is on the horizon.
As an aside: the TD Sequential is a time-based indicator created by a special advisor to Point 72 Asset Management and a CEO of a market research and analytics firm. Per a technical analysis site, “When the 9 count is completed, it is at that point, a price pause, price pullback, or reversal is likely.”