Skip to content

The XRP price soared 50% in a week to hit a new year high. What should you watch out for now?

November 21, 2020

Bitcoin (BTC) has been the focus of attention in recent months. But altcoins are finally following in the footsteps of the market-leading cryptocurrency. Several large-cap altcoins have seen double-digit gains over the past few days. which led to a small midseason.

Not only did Ether (ETH) soar above $ 500, but Litecoin (LTC) also gained 40% last week. But still, XRP (XRP) is currently in the spotlight with a daily rally of more than 20% and a new high for the year after gaining more than 50% last week.

XRP breaks critical resistance at $ 0.30

XRP / USD 5-day chart. Source: TradingView

Longer periods indicate a crucial XRP outbreak. as the $ 0.30 zone has been resisting for a year.

The XRP price soared 50% in a week to hit a new year high. What should you watch out for now?
The XRP price soared 50% in a week to hit a new year high. What should you watch out for now?

Such a breakout is essential for further upward momentum as a new higher high and a new annual high have been reached.

A higher high increases the likelihood of a new uptrend and potentially creates a new level of support in the previous resistance zone of $ 0.30.

If this area becomes support, a new area will be set for XRP and the trend could reverse for the first time in three years.

Important values ​​for the XRP / USD pair

1-day chart of the XRP / USD pair. Source: TradingView

The XRP price chart shows a massive move in the days before that. As an investor, you should be aware of the FOMO and perhaps avoid jumping after such a move.

This of course includes XRP in particular A large correction typically occurs after a massive FOMO candle.

It is fascinating to look at these fixes for a buy and sell approach as they offer tremendous opportunities.

The values ​​to be considered are well above the current price when there are several resistors. USD 0.4275 and USD 0.495 are the main ones.

If the price of XRP corrects, the support zone must be on the lookout for a possible move from support to resistance It’s at $ 0.33 and in the range of $ 0.29 to $ 0.31.

If the latter serve as support, a great opportunity could be created for the next step.

Bitcoin’s dominance shows a possible upper limit

4-day chart of the dominance of bitcoin. Source: TradingView

Bitcoin’s market cap dominance is finally showing signs of the possible construction of a roof as it is currently in decline. The story provided interesting facts about this narrative. The fourth quarter is usually difficult for altcoins, so we usually see a rooftop building on BTC.

But still, If bitcoin starts correcting itself, altcoins will likely fall wrong. This would push the dominance of Bitcoin back to over 67%.

Historical data shows such highs in December and this time around it appears to be the case.

If so, altcoins will see another off-season in 2021.

Levels to watch out for for the XRP / BTC pair

4-day chart of the XRP / BTC pair. Source: TradingView

The BTC pair with XRP is showing clear signs of a possible reversal. Currently, XRP / BTC is testing the previous range to change it from support to resistance. If this were rejected here, the move from support to resistance would be bearish.

With that in mind, there are some levels and scenarios to look out for for a possible continuation upwards.

The first is going from support to resistance in the range of 0.00002250 to 0.00002350 satoshis. This area is currently acting as resistance, but once turned into support it is likely to continue move towards 0.00003200 satoshis.

The second scenario is the change from support to resistance of the satoshis area of ​​0.00001900. When that shift occurs, a higher low will be set and we could see the test of the 0.00osh2300 satoshis range again.

In general, the market looks cheaper every day, This can lead to massive profits for many altcoins in the coming months.

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