The XRP token is on the brink of a major breakout above $0.30 after rallying 20% from last week’s lows of $0.25.
The rise in price has coincided with a huge spike in the number of daily transactions, which has now reached 1.6 million in the past 24 hours – just short of its previous all-time high according to data from BitInfoCharts.
The transaction rate for XRP hasn’t been this high since January 2018 during the peak of the cryptocurrency bull market.
From a technical perspective, if XRP can break above $0.30, it will most likely rise by another 10% to the next level of resistance at $0.33.
However, the daily 200 EMA could also provide a point of resistance as it previously suppressed price on October 26. XRP has also not traded above the 200 EMA since July.
$XRP daily transactions at 1.6 million. The highest it has been since January 2018.$crypto pic.twitter.com/ZyYRgg4WfB
— Oliver Knight (@OKnightCrypto) October 29, 2019
If price gets rejected at $0.30, XRP will most likely slump back to the $0.27 region. However, this also depends on the upcoming direction of Bitcoin, which is seemingly leading the market at the moment.
Bitcoin experienced a tremendous 40% rally over the weekend, rising from $7,400 to $10,300 before consolidating at around the $9,350 mark.
Ripple CEO Brad Garlinghouse has been vocal in defence of his company and the XRP token in recent weeks.
He responded to ‘FUD’ by stating that XRP “is not a security” and that OTC sales of the token are expanding XRP’s utility.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.