XRP has seen incredibly strong price movements in the past few days, which has enabled it to eliminate some of the underperformance it has seen in recent weeks.
The cryptocurrency is now pushing to a critical level of resistance that has not been exceeded for a long time.
An analyst notes that this level may continue to act as strong resistance in the coming days, with further rejection here potentially damaging the short-term outlook.
There is a striking fractal suggesting that XRP is in the early stages of its next parabolic surge.
Whether this pattern repeats itself in the short term or not depends on how it responds to this crucial short-term resistance and how the aggregate market trends will develop in the coming days and weeks.
The XRP rally stops when it reaches key resistance. Will it break it?
At the time of writing, XRP is trading slightly at its current price of $ 0.30. Here, the upward trend has stalled in recent days after peaking at $ 0.32 earlier this week.
Although it outperformed the entire crypto market last weekend, its rally showed signs of hesitation as it struggled to break above $ 0.32.
The cryptocurrency is now worse than Bitcoin, Ethereum, and some of its other counterparts – all of which are experiencing remarkable upward momentum today.
Where it will develop next probably depends on whether it is able to overcome the massive selling pressure between $ 0.31 and $ 0.32.
As we talk about this key level, an analyst explained that a break above this range could mark the start of his next section higher, while another refusal here could lead him back to the $ 0.20 upper region.
"XRP: Similar picture here. Lost support, which is now ideally rejected as resistance. Reclaim and the path is open towards $ 0.325. If you lose $ 0.295, we will look at $ 0.271. "
Image Courtesy of Crypto Michael. Chart via TradingView.
Is this resistance the last thing that prevents it from becoming parabolic?
The resistance it is currently facing is great, and that could mean that breaking it will catalyze a massive influx of buying pressure.
Another popular dealer lately present a diagram It shows remarkable similarities between the price movement XRP has seen in recent months and that observed before its parabolic rise against BTC in early 2017.
Image Courtesy of il Capo of Crypto. Chart via TradingView.
If it breaks above its current resistance and raises another leg higher, this could confirm the fractal shown above and signal that a major uptrend is imminent.
Featured image from Unsplash. Charts from TradingView.