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XRP’s price action has been pretty weak lately, with buyers and sellers getting stuck as they struggle to gain control of the cryptocurrency’s short-term trend.
This lack of momentum is not new to XRP, as the token has been stuck in a phase of macro consolidation in recent years against its USD and BTC trading pairs.
This caused its community to dry up, with the so-called “XRP army” largely evaporating as they moved on to other projects.
It is important to note that XRP still has growth potential, as many traders still see it as a short-term vehicle for providing gains due to its tendency to see parabolic moves.
An analyst is now pointing to some striking similarities between Ethereum’s price action prior to its recent parabolic move and XRP’s current price action.
This suggests that it could see a serious upside to its resistance in the region above $ 0.20.
XRP continues to consolidate as bullish analysts
At the time of writing, XRP is trading up just under 1% at its current price of $ 0.255.
It has been hovering between lows of $ 0.24 and highs of $ 0.26 over the past week, with buyers and sellers struggling to gain momentum.
If it fails to break out of the upper boundary of this trading range, it may continue to consolidate or move back towards its base support within the region below $ 0.20.
The buying pressure here is always decent and should remain constant as long as the broader market remains bullish.
Unless the XRP token starts gaining greater utility through Ripple’s partnerships, any short-term price pump will likely be fleeting due to the support of short-term traders only.
Analysts say XRP is gearing up for a bigger push
While sharing his thoughts on the current outlook for the struggling cryptocurrency, an analyst explained that he expects it will see some short-term upside and follow in Ethereum’s footsteps.
“Basically xrp looks exactly like eth before it burst yesterday … easy scalp long imo,” he said, pointing to the similarities seen between the two asset charts.
Image Courtesy of @SmartContracter. ETHUSD and XRPUSD Charts via TradingView.
XRP’s recent inability to follow the market was a rather gloomy signal and could indicate that further underperformance is imminent.
That said, there is a strong possibility that it will see a short-term rally towards $ 0.30 in the days to come.
Featured image from Unsplash. Charts via TradingView.
