Bitcoin

The XRP price is targeting $ 1 as the BTC price can skyrocket

While Bitcoin (BTC) is poised to hit a potential new all-time high, Other currencies are also showing strength. One of those coins is XRP, which has seen a surge in the past few weeks.

The XRP price rose from $ 0.22 to a high of $ 0.78 in Novemberwhich immediately resulted in a massive correction towards $ 0.45.

Let’s take a look at the XRP price charts to see if this was an entry point before the next stage.

The critical zone around USD 0.45 remains as support

XRP / USDT daily chart. Source: TradingView
The XRP price is targeting $ 1 as the BTC price can skyrocket
The XRP price is targeting $ 1 as the BTC price can skyrocket

The XRP daily chart shows clear support and resistance zones. In such intense movementThe values ​​to be observed can be derived from the daily period.

In this case, the first massive support zone is around the $ 0.45 line. XRP corrected towards this zone when the price of Bitcoin fell to $ 16,200 on Thanksgiving.

The graphic shows a clear jump in support. since then the price has increased by more than 40% since then.

If $ 0.45 failed to hold support, the next zone was in the $ 0.30 area. This is the previous resistance zone that would likely change support.

What is the new resistance as the XRP rally continues?

The next breakout resistance zone is the USD 0.69 areaThis is critical before $ 1.00 can come into play.

Daily chart of the XRP / USD pair. Source: TradingView

There are some useful tools for determining potential areas of resistance on the XRP chart. One of them is the Fibonacci extension tool.

The most recent top end is number “1” in the Fibonacci expansion tool, and the bottom is about $ 0.20 as a “0”.

So, The next likely zone of resistance can be measured around the Fibonacci level of $ 1.618-1.13. Similar, The second zone is the zone around $ 1.70This is the Fibonacci level at 2.618.

However, the first resistance zone between $ 1.08 and $ 1.18 is an important area of ​​resistance as it also acts as resistance throughout the 2017 cycle, as the graph shows. It can be argued that once the $ 0.70 area is broken, a run towards $ 1.08-1.18 is likely.

The key level to look out for with the BTC / XRP pair

Daily chart of the XRP / BTC pair. Source: TradingView

As soon as a price breaks above the resistance The next thing you want to see is the previous resistance that turns into supportif you’re a cop

The BTC / XRP chart shows such a critical value (highlighted in green) that it can be moved in support. In late 2019 and early 2020, this area served as low reach and support for a significant period of time.

However, he could not maintain this support, which resulted in a decrease to 0.00001500 afterwards.

With the recent breakout at 0.00004000 sats, The bulls want support / resistance around 0.00002400 sats. If so, then XRP will likely continue to move towards the $ 1.00 barrier.

Decrease the timeframe levels to see them on the XRP chart

XRP / USD 1 hour chart. Source: TradingView

The chart of the XRP / USD pair shows an obvious break above USD 0.65. As long as this area provides support and confirms the outbreak, Continuation towards $ 0.74 is possible.

However, unless you break out of the $ 0.65 area, a drop towards $ 0.55 becomes the likely scenario.

Higher timeframes give a clearer indication of where XRP is in the market cycle. A multi-year downtrend has been broken on the upside, meaning declines are likely to be viewed as entry points for traders.

With this attitude, If XRP has $ 0.45 as support, it will likely move further towards $ 1.00, especially if the price of Bitcoin hits a new all-time high.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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