As bitcoin sets new highs, XRP appears set to initiate a new bull wave. A cryptocurrency analyst has observed that a particular technical indicator is indicating the possibility of the asset jumping over 192% towards $1.
A Huge Breakout Imminent
The $0.30 region has been pivotal for XRP’s overall trend over the last few years. In August last year, the level acted as sturdy support which helped the token avoid massive losses during pullbacks. Since then, however, the $0.30 region has acted as stubborn resistance hindering any meaningful rally. XRP recently tested this level before a sharp rejection.
Now, analyst Magic is suggesting that XRP could commence the much-anticipated bull market. Magic notes that XRP recently broke out of a massive falling wedge. The analyst projects that the digital currency could soon target the $0.80-$0.92 range. This would mark an appreciation of over 192% from the current $0.28 price level.
“Based on the size of the falling wedge pattern, I’ve found that the upside target should be around the 0.80 level. However, the 23.6% retrace for the entire bear market is at about 0.92. So, it’s possible that XRP could rally well above the 0.80 level to test the 0.92 level. The MACD is printing a strong expansion to the upside, increasing the probability of a push to higher levels.”
XRP Faces Stiff Resistance Ahead
While Magic’s analysis is music to XRP investors’ ears, the analyst warns that attaining these sky-high prices won’t come easy. For starters, XRP will have to tackle the resistance at $0.30 and $0.35. Magic believes there is a high possibility that the fourth-largest crypto will obliterate these hurdles and this will clear the path for $0.55 and $0.80 next.
“So, while there are some strong resistance levels to contend with, I think XRP could be on the verge of the next powerful bull market that we’ve all been waiting for,” Magic said.
The increasing number of XRP whales in recent months adds credence to the theory that XRP is poised for a parabolic rally. Whales gobbling up XRP is a sign that big-money investors are expecting the price to go up in the near future.
Nonetheless, XRP has had the worst performance in 2020 compared to its peers. Bitcoin, for instance, is up 143% while ethereum has raked in a whopping 270% gains. XRP, on the other hand, has gained a mere 55% since the beginning of this year.