Ripple’s XRP token has vastly benefitted from what some are describing as a weekend “alt season”, with it rising above the psychological level of resistance at $1.00.
Staggeringly, XRP has now rallied by more than 150% since the turn of the month as traders speculate over a bullish outcome to the ongoing SEC lawsuit with Ripple over unregistered securities sales.
Its hike in price has come alongside a surge in a number of popular assets from 2017 including Tron (TRX) and NEO, demonstrating the rotational market that cryptocurrency has become over the past few months.
In terms of XRP from a technical analysis perspective, it needs to close Tuesday’s daily candle above $1 to confirm a breakout, with price targets beginning to emerge at 2017 levels of $1.09, $1.20 and $1.24.
However, if it rejects from the $1 it will likely retest the previous level of resistances at $0.94 and $0.75 as support before deciding on its next path.
Much of it will also depend on the trajectory of Bitcoin, which has been consolidating beneath the $60,000 level for more than a week.
Altcoins like XRP typically perform well when Bitcoin engages in sideways price action, if Bitcoin makes a major move in either direction, XRP will most likely subside as traders attempt to capitalise on lower risk assets like Bitcoin.
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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.