XRP has been caught in a tight consolidation pattern in recent days, with its recent parabolic rally slowing as the bulls struggle to break out of resistance in the region above $ 0.60.
The recent rally seen by the cryptocurrency came after it broke through a long-standing trading range of $ 0.20 to $ 0.30 that lasted for several years.
One trend that has given way to cryptocurrency has been the fact that Ripple, the company closely associated with the XRP token, stopped dumping its holdings every quarter, which previously created a strong headwind for the cryptocurrency.
In addition, an upcoming release of tokens that XRP holders will receive was also a catalyst for the upside.
It is now facing intense resistance within the mid $ 0.60 region that must be broken before continuing to rise. However, the growing hype surrounding it seems to indicate that the upside is imminent.
A trader is now aiming for a move towards $ 1.00, noting that his technical strength coupled with the growing hype for the upcoming airdrop could trigger and fuel this next step higher.
XRP stabilizes at $ 0.60 as Crypto Market momentum stops
At the time of writing, XRP is trading down just over 1% at its current price of $ 0.60. This is about the price at which the cryptocurrency has been trading in the last few days.
After its recent surge to highs of $ 0.90, the cryptocurrency has been caught in a tight and inexorable consolidation phase.
Until Bitcoin can resume its rally and set new all-time highs, altcoins like XRP may continue to see stagnant price action.
Analyst: XRP will likely increase as momentum builds
A trader is waiting for XRP’s price consolidates further before posting another huge hike. He is specifically looking towards it on a rally to $ 0.97.
According to him, the upcoming Flare Networks Spark token for XRP owners could also be a stimulus to the upside.
“XRP looks like it’s gearing up for the move to .93-.97c imo. Below were the lows. Airdrops coming in expecting a little more fomo it takes us in.”
Image Courtesy of Pentoshi. Source: XRPUSD on TradingView.
The next few days should shed some light on XRP’s near-term outlook, as any Bitcoin weakness could invalidate its bullish outlook and lead to the downside.
Featured image from Unsplash. Charts from TradingView.