Will the Flare Network Airdrop trigger a rally to $ 1.00?

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With Bitcoin (BTC) in the spotlight for the past few months, the Altcoin XRP (XRP) has done quite well in itself. Bitcoin’s rally has been linked to institutions and Wall Street betting on this new asset class and digital store of value. In the meantime, XRP has broken out of a multi-year downward trend to pick up speed again.

However, the XRP price has not yet broken the $ 1 mark, although the Flare Network airdrop is now slated for December 12th just around the corner.

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Is this latest move a classic example of “buy the rumor, sell the news” or should more upside be expected? Let’s take a look at the charts.

XRP hits its first higher high since January 2018

XRP / USDT 1-day chart. Source: TradingView

XRP / USD has shown some impressive numbers in the past few weeks as the token rose from $ 0.22 to a high of $ 0.80. This is a classic XRP price action as the rallies are vertical and volatile rather than organic and gradual. The latest move is no exception as the price goes up within a few days.

However, the latest move has broken a multi-year downtrend, as the chart shows. This downtrend has been broken and a new higher high has been reached. In fact, this is the first higher high since the bear market began in January 2018.

Additionally, a minor rally took place in August that increased the price of XRP from $ 0.16 to $ 0.33. Following this move, the price of XRP corrected to its previous resistance area at $ 0.22. This correction marked a bullish support / resistance flip after which the massive move towards $ 0.80 took place and hit as high as $ 0.90 on Coinbase last month.

A correction seems to be immediately after such a move

XRP / USD 1-day chart. Source: TradingView

The price movement of XRP often gives a signal before such vertical price movements, after which an extended correction begins. The table above shows four previous XRP moves that are similar to the last one.

Such large vertical movements typically occur after a lengthy correction that can span weeks to months and forms the basis for the next impulse movement.

This is not a bad result as impulse movements often require such corrections before more upward movements occur. Often times, these impulsive moves correct themselves towards the previous resistance area to set up a bullish support / resistance flip.

Levels to watch out for with XRP

XRP / USDT 1-day chart. Source: TradingView

The daily timeframe indicates some nice levels that XRP traders or investors should look out for. These levels are based on historical price action as both key zones are past resistance areas.

The first is at $ 0.45, which has been tested over the past few weeks. The moment Bitcoin was corrected to $ 16,200, XRP / USD fell sharply towards $ 0.45, causing a support / resistance flip.

This confirms the current massive correlation between cryptocurrencies. Altcoins can go bullish again as long as Bitcoin remains stable. However, once bitcoin begins to correct, altcoins suffer and often suffer greater losses than bitcoin.