Much to the surprise of investors, XRP was one of the best performing cryptocurrencies last day. The bulls took full control of their price action after breaking their trading range between $ 0.20 and $ 0.30.
It’s getting parabolic now and the bulls are erasing the recent underperformance trend to bring it to $ 0.50 in the short term.
XRP appears to be finding some resistance in its current price region that could slow its rise and lead to some consolidation in the short term.
It is important to note that there is no fundamental reason for this recent boom as the cryptocurrency is still not accepted and there is still a long way to go before its valuation is fully justified.
There is a chance that the ongoing resurgence of the crypto market could shift the company’s attention to the market, which may make it easier for Ripple to refer users to their XRP-related products.
A trader now expects another uptrend for the token and considers USD 0.46 as a short term target.
This would mean an increase of over 10% from the current price level and could rise there in the short term before resistance is found.
XRP increases when cops take control
The past few years have been difficult for XRP as the cryptocurrency has been trapped in one of the most intense bouts of sideways trading in the entire market.
Where the crypto trends may largely depend on their reaction to the recent breakout in the medium term as some traders may view this as an exit option.
At the time of writing, XRP is trading over 23% from its current price of $ 0.41. This is roughly the same as the price it has been trading at in the past few hours. Holding above this level could create some serious momentum in the medium term.
Here’s why it could go higher soon
An analyst believes that the contested token still has room for further profits in the short term.
Specifically waiting for a surge towards $ 0.46, it notes that this is the next major level of resistance it will face.
“XRP update: I love it when a trade works so quickly. I think we’re going to see a retreat in 0.38c from here, followed by another leg in 0.46c. “
Image Courtesy of Bagsy. Source: XRPUSD on TradingView.
The days ahead will provide an indication of whether XRP is well positioned to see further bullish moves in the days and weeks ahead, or whether this ongoing rally is selling heavily.
Featured image from Unsplash. Charts from TradingView.