“XRP Has Its Eyes on $ 1”: Ripple Commentary by Renowned Analyst
While Bitcoin ( BTC ) has reached its all-time high, other cryptocurrencies are also showing strength. One of these coins is XRP, which has seen a steep rise in the previous weeks. The price of XRP rose from $ 0.22 to $ 0.78 during November, which immediately resulted in a major correction towards $ 0.45.
Famous analyst and trader Michael van de Poppe published an analysis on Cointelegraph to determine if these levels are an entry opportunity before the next step. Here are the analyst’s comments:
Critical zone stands as support around $ 0.45
According to the analyst, the daily chart of XRP shows clear support and resistance zones. In such a heavy pump, the levels to be monitored can be derived from the daily time frame. In this case, the first major support zone is around the $ 0.45 barrier. XRP corrected towards this area as the Bitcoin price dropped to $ 16,200 on Thanksgiving. The chart shows a clear support leap, with the price rising more than 40% since then.
“If $ 0.45 fails to sustain support, the next support zone was around $ 0.30, which is the previous resistance zone that is likely to provide support,” the analyst says.
In the scenario where XRP rally continues, what are the new resistance levels?
The next resistance zone to break now is the $ 0.69 area, which was crucial before $ 1.00 kicks in, according to the analyst.
There are several useful tools for determining potential resistance zones on the XRP chart. One of them is the Fibonacci extension tool. The number “1” in the Fibonacci extension tool is the last level, and the “0” is around $ 0.20, the bottom number. Therefore, the next possible resistance zone could be measured at the 1.618 Fibonacci level at $ 1.13, according to Michael van de Poppe. Similarly, the second zone is around $ 1.70, which is the 2,618 Fibonacci level.
However, the initial resistance zone between $ 1.08-1.18 is an important resistance zone as it acted as resistance throughout the 2017 cycle as seen on the chart. It can be argued that a rise towards $ 1.08-1.18 is likely when the $ 0.70 area is broken.
Key level to follow for BTC / XRP
When a price breaks above the resistance, what is desirable to see is that the previous resistance becomes support. According to the analyst, the BTC / XRP chart shows a very critical level (highlighted in green) that can be turned into support. In late 2019 and early 2020, this area served as a support for a significant period of time. However, it was unable to maintain this support and later dropped to 0.00001500.
With the recent breakout to 0.00004000 sats, the bulls will want to see a support / resistance change in the 0.00002400 sats area. If that amount is, XRP is likely to continue running towards the $ 1.00 hurdle.
Levels to be monitored in a narrower range
According to the analyst’s comments, the XRP / USD chart shows a significant break above $ 0.65. As long as this area holds support and confirms a breakout, it is expected to continue towards $ 0.74. However, not breaking the $ 0.65 area means a drop towards $ 0.55 would be the likely scenario.
Broader timeframes provide a clearer picture of where XRP is in the market cycle. A multi-year downtrend broke up; this means that the decreases will likely be considered as entry opportunities for traders.
“If XRP holds $ 0.45 as support, it is likely to continue towards $ 1.00, especially if Bitcoin price reaches an all-time high.” he concluded his interpretation.