Like Bitcoin, XRP has faced a strong pullback over the past few days after peaking last week. As of this article’s writing, the leading altcoin is down 5% in the past 24 hours. XRP now trades for $0.265, which is below a number of pivotal technical resistances in the near term.
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
XRP Could Soon Reverse Higher
According to the Tom Demark Sequential, XRP will soon see a reversal to the upside. The technical indicator recently formed a “buy 9” candle per the TD Sequential, which suggests prices will soon move higher from current levels.
Chart of XRP's price action over the past few months from a Telegram channel tracking the Tom Demark Sequential. Chart from TradingView.com
This isn’t the only technical sign suggesting XRP will soon move higher. The head of technical analysis at Blockfyre, a crypto research firm, recently wrote the following on the XRP chart below:
“$XRP Still consolidating around this ever so important S/R that dates back 3 years. Ultimately expecting this to move up over the next few months at it’s own pace. Eyes on .475 in the coming weeks… You despise money if you don’t own XRP. Maximum point of financial opportunity is right at these levels.”
Chart of XRP's price action over the past few years with analysis by crypto trader "Pentoshi" (@pentosh1 on Twitter). Chart from TradingView.com
There are also on-chain signals suggesting XRP will remain at high valuations for the time being:
“In spite of $XRP’s -9.2% retrace this past week, the active address output we’re seeing for the #3 market cap #crypto asset has remained high. #Ripple holders can take solace in it being one of the few #alts with a DAA bullish divergences we’ve identified.”
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, ETH DeFi Boom, BitMEX KYC
All Eyes on Bitcoin
Bitcoin could end up dictating XRP’s directionality, though, especially as the crypto market is currently being dictated by macro market trends.
Analysts remain optimistic about BTC despite the recent weakness that culminated in a move to $11,150.
NewsBTC’s Tony Spiltoro shared this chart on Thursday. It shows that Bitcoin has formed a “buy 9” Tom Demark Sequential candle.
These candles are often seen when an asset is poised to reverse to the upside. Bitcoin rallying is likely to bring XRP higher, again because that the entire crypto market is closely linked.
Chart of BTC's recent price action by NewsBTC analyst Tony Spiltoro. Chart from TradingView.com
Related Reading: Crypto Tidbits: Dave Portnoy Drops Bitcoin, Tether Supports Ethereum’s OMG Network, DeFi Still Hot
Featured Image from Shutterstock Price tags: xrpusd, xrpbtc Charts from TradingView.com Here's Why XRP Could Soon Jump to the Upside After 20% Drop
from NewsBTC https://www.newsbtc.com/2020/08/27/heres-why-xrp-could-soon-jump-to-the-upside-after-20-drop/?utm_source=rss&utm_medium=rss&utm_campaign=heres-why-xrp-could-soon-jump-to-the-upside-after-20-drop
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