XRP Dominates Cryptocurrency Market with Highest Weekly Gains

XRP Dominates Cryptocurrency Market with Highest Weekly Gains

Key Insights:

  • XRP has become more bullish than bitcoin and is leading by 31.11%
  • Ripple is currently in a descending channel and is testing $0.47 -$0.5
  • XRP may decline to levels lower than $0.4 if a breakout from the channel doesn't happen
  • If a breakout happens, Ripple will rally to $0.55 or beyond

XRP has become one of the star cryptocurrencies on the market over the last two weeks, beating even bitcoin in the bullish race and gaining 31.11% against the flagship cryptocurrency in the XRP/BTC pair as illustrated below.

<em>Chart showing XRP's gains against Bitcoin since 20 March</em>
Chart showing XRP's gains against Bitcoin since 20 March

According to data from CoinMarketCap, Ripple has moved by 26% to the upside over the last seven days, and by 6% over the last day as illustrated below.

<em>Snapshot showing tokenomics on XRP</em>
Snapshot showing tokenomics on XRP

Judging by the price action of the cryptocurrency, the question remains "how far up can Ripple go, and how soon?"

XRP's Price Action

While other cryptocurrencies barely moved up through the weekend, Ripple was making moves in its struggle to break through the resistance around the $0.49 zone.

Zooming out on the charts, we can see that Ripple is currently in a descending channel, as illustrated below.

<em>Chart showing XRP in a descending channel</em>
Chart showing XRP in a descending channel

The setup above shows massive bullishness on Ripple, but raises some very important questions:

  • How likely is Ripple to break through the upper resistance of the channel?
  • How risky is blindly jumping into a trade right now?

For one, XRP's ability to break through the top of the channel doesn't seem assured, because the bears are likely laying in wait somewhere close, and will attempt to sink the price towards the next support level around $0.426 or lower.

<em>Chart showing the possible price action of Ripple</em>
Chart showing the possible price action of Ripple

The recent breakout from the cryptocurrency's 200-day MA has confirmed that Ripple is currently bullish. And if a breakout from the top of the channel happens, Ripple is expected to rally to $0.55, which is now the first target.

<em>Chart showing XRP's break above its 200-day SMA (purple line)</em>
Chart showing XRP's break above its 200-day SMA (purple line)

From this point, the bulls might still push the price higher from there by more than 10% to reach $0.6.

However, the RSI is currently too close to the overbought region, adding to the assumption that Ripple reaching $0.55 in a single move may be far-fetched.

If the bears are successful in starting a decline from the top of the channel where the cryptocurrency currently sits, the price would plunge and drop to less than $0.4, where the 200-day SMA currently sits.

Overall, it is generally believed that XRP's price movement is due to the proceedings of the court case between Ripple Labs (issuers of Ripple) and the US Securities and Exchange Commission (SEC).

As the case draws to a close in court, Ripple is expected to become more volatile and unpredictable, depending on the outcome of the ongoing legal battle.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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