After a brutal performance in 2019 of -50%, XRP, the third-largest cryptocurrency by market capitalization, has finally begun to show signs of life over the past few weeks, having been partially revived by a colossal nearly 50% surge in the price of Bitcoin.
As shown in the chart below, since the altcoin hit $0.175 in the middle of December, it has exploded higher, rallying as high as $0.255 just last week as bulls have finally stepped in.
This is undoubtedly bullish, though the upward momentum has stalled around $0.245. Regardless, analysts claim that if a certain price level can be reclaimed, XRP
could continue even higher.While XRP’s latest leg higher has had many analysts bullish, it remains below the key $0.25 level — the 0.5 Fibonacci Retracement level of the range the asset has been trading in for the past five months.
According to TraderSmokey, a prominent cryptocurrency trader, if XRP manages to retake the aforementioned price point, it would set the stage for a 14% “run up to that level,” referencing the “important weekly level at $0.28,” which has acted as an inflection point for the asset over recent weeks.
Smokey added in the following tweet that the Ichimoku Cloud, a key technical indicator that identifies price points and trends, is “already partly bullish,” suggesting the price of XRP has the momentum to move even higher from here.
There is a confluence of technical signs corroborating the idea that XRP could continue to capitalize on the forming uptrend.
Popular analyst TradingShot argued in a recent TradingView post that XRP is seemingly poised to explode higher, pointing to a confluence of bullish technical factors to back such sentiment:
Although there is this evidence to support XRP rallying higher, it is important to note that the altcoin’s price action is dependent on that of the market leader, Bitcoin; the trajectory of altcoins have long been tied to that of BTC.
Fortunately for XRP bulls, then, Bitcoin is showing signs that the latest 50% rally to $9,500 is the start of something bigger. Fundstrat’s Tom Lee noted yesterday that BTC has surpassed its 200-day moving average.
He then noted that per his firm’s analysis, whenever the price of Bitcoin is about the 200-day moving average, the six-month forward win rate for the cryptocurrency “jumps to 80%,” “essentially [meaning BTC is] ‘re-entering’ a bull market.”
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