Ripple’s native token XRP looks bullish again.
The fourth largest cryptocurrency by market capitalization was among the top performing on Thursday as its price rose nearly 24 percent in the past 24 hours. The XRP / USD exchange rate hit a new weekly high of $ 0.585, the gains of which were driven alongside a general uptrend in the cryptocurrency market.
The XRP pump started after Bitcoin, the world’s leading cryptocurrency by market valuation, surpassed an above-average resistance level of $ 20,000. The upward movement of BTC / USD influenced the competing tokens to track the trend thanks to its longstanding positive correlation with top cap altcoins.
Bitcoin corrected lower from its record high of $ 23,776. Source: BTCUSD on TradingView.com
Bitcoin corrects lower from its record high at $23,776. Source: BTCUSD on TradingView.com
For example, the second largest token, Ethereum, rose 11.29 percent under the influence of Bitcoin.
But XRP’s profits surpassed others. This could be due to a recent partnership between IBM and Expertus Technologies, a Canadian fintech startup that is actively experimenting with Ripple Labs’ XRP-powered payment solutions.
In the meantime, XRP may have led the rally as well, as it was already available cheaper than the other top tokens, especially after the price fell 45 percent from its annual high of $ 0.79. Traders worriedly anticipated a bull run in the altcoin market after Bitcoin moved to $ 20,000 and focused primarily on XRP for its lower valuation than the rest of the top tier coins.
Technical XRP outlook
The XRP / USD exchange rate jumped over a short-term declining trendline after moving on Thursday, adding to expectations of a longer uptrend in the daily sessions to come.
This is due to the formation of two converging bullish patterns: a falling wedge and a descending parallel channel. Both technical indicators share the common resistance trend line (the one mentioned above). Meanwhile, according to their textbook descriptions, they are bullish, each with their own upside targets for the underlying asset.
The Ripple token rebounded 34 percent in just two days of trading. Source: XRPUSD on TradingView.com
Ripple token rebounded by 34 percent in just two days of trading. Source: XRPUSD on TradingView.com
For example, the rising wedge bull target for XRP / USD is – currently – close to $ 0.79 (calculated from the maximum distance between the wedge’s top and bottom trendlines). Similarly, the descending channel’s upside target is $ 0.76.
Another strengthening of the bullish outlook is a moving average crossover. So, it seems that the 4H chart of the XRP / USD will print a golden cross when its 20-period MA (green) closes above its 50-period MA (red). Traders look to a 20-50 MA crossover as a guide to increasing their longs in the market.