XRP has surprisingly been one of the top performing altcoins in the last few days, far outperforming Ethereum’s profits in the last month and even outperforming Bitcoin’s profits in the last week or two.
This is due to prolonged sideways trading that lasted over a period of several years.
The break above the $ 0.30 level – which has long been a strong resistance level – appears to have sparked this move and the parabolic uptrend in time since then confirms the importance of this latest breakout.
A trader now notes that the cryptocurrency is showing some signs of a potential “blow-off top” being formed.
This is a technical pattern seen when a cryptocurrency goes through a parabolic, FOMO-induced rally that ends in aggressive profit-taking.
So far, no sharp backtracking can be seen. This means that bulls may have some juice left to propel them higher, potentially targeting the next $ 1.00 level.
If the blow-off top expected by an analyst comes to fruition, it may next fall towards $ 0.40.
XRP continues to explode as the shocking upward trend continues
At the time of writing, XRP is trading over 10% at its current price of $ 0.68. This is a massive increase from the $ 0.23 weekly lows set a few days ago.
This parabolic advance came about after the cryptocurrency crossed its resistance level of $ 0.30 earlier this week.
It declined at $ 0.80 overnight, suggesting that this is a major level of resistance that may further suppress its price action in the days and weeks to come.
A break up here would open the gates to a short-term move to $ 1.00, which is likely to prove to be an intense resistance level.
Analyst: Here’s why a “blow-off top” could be imminent
A trader explained in a new tweet that XRP could form a “blow-off top,” which is a sign that a disadvantage is imminent.
The chart he offers shows a downside target of around $ 0.44, which would represent a significant drop from the current price level.
“XRP Giving Blow Off Top Vibes. I hate money so I’ll try to cut this short, ”he said, pointing to the table below.
Image Courtesy of Altcoin Psycho. Source: XRPUSD on TradingView.
The coming days should provide some glimpse into the long-term significance of this latest movement. Any sharp rejection or sell-off could confirm XRP’s recent highs as the top.
Featured image from Unsplash. Charts from TradingView.