After parabolic moves since early November, XRP price has seen a solid pull back. This was expected, especially with Bitcoin rejecting the $20,000 push. Based on the current XRP price analysis, we outline a key support level to keep an eye on. Traders could be basing their next moves off these levels.
At the time of this reporting, XRP is currently trading at $0.582. The third-largest digital asset by market cap has surged ~ 143% over the last 30 days. XRP is outperforming Bitcoin, which has seen ~ 36% growth in the last 30 days. Since early November, strong upward momentum has helped XRP accomplish new yearly highs. Following the $0.70 push in late November, XRP has experienced a pull-back to $0.55-0.60 levels.
As Bitcoin inched closer to all-time highs, it was expected that XRP would outperform in the short-term. It is important to note that XRP is still miles away from revisiting all-time highs ( on a percentage basis). Bitcoin is one of the few digital assets to visit all-time highs this year. We have outlined these metrics below.
- Bitcoin all-time high date: Dec 1, 2020 ( -3.9% away )
- Ethereum all-time high date: Jan 13, 2018 ( -59.1% away )
- XRP all-time high date: Jan 7, 2018 ( -82.8% away )
- Litecoin all-time high date: Dec 18, 2017 ( -76.7% away )
- Bitcoin Cash all-time high date: Dec 20, 2017 ( -92.4% away )
XRP Price Analysis
As mentioned above, XRP has been one of the best performers since early November. You have seen similar price action with many other altcoins that are farther away from reaching all-time highs compared to Bitcoin. With Bitcoin cracking all-time highs recently, you could continue to see altcoins outperform to close out the year. We take a look at XRP’s price action below and outline key support and resistance levels that traders will be basing sentiment off of.
With the recent sell-off still looking for stability, traders are expected to monitor $0.55 support levels. If XRP rejects this support, the digital asset is expected to retrace to $0.50 levels in the short-term. With volume cooling down recently, this could very well come to fruition.
On the flip side, if XRP price stays above $0.55 support, we expect the digital asset to find stability and retest $0.66 resistance in the short-term. If that were to occur, many argue that $0.80 resistance would be targeted shortly after. Visionary Financial recently explained on Twitter that $0.80 resistance was one of the most important levels since 2017. This resistance level has only been challenged a couple of times throughout XRP’s trading. The first time it was accepted, XRP rallied ~ 250% to all-time highs. In the next attempt ( May 2018 ), XRP rejected $0.80 and saw a sharp sell-off. It is still premature to talk about $0.80 levels until XRP can first power through $0.66 resistance.
ROC ( Rate of Change )
We are also keeping a close eye on XRP’s rate of change. This metric is outlined at the bottom of the chart. Historically speaking, a ROC above 0.00 denotes bullish sentiment. This is why we saw ROC skyrocketing as XRP approached new yearly highs. This also explains the sharp pullback in ROC once the price of XRP saw a correction. ROC has now gone negative, which can denote bearish sentiment. It needs to get closer to neutral levels ( 0.00 ) in the short-term or it could be signaling that XRP wants to reject that $0.55 support level we outline above.
This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. This article was sourced by Visionary Financial