The cryptocurrency market has rebounded significantly over the past day. Ripple’s native coin, XRP, has made a notable bullish gain, and it is eyeing a further uptrend over the coming days.
On January 21, XRP was one of the hardest-hit tokens in the cryptocurrency market. However, almost all coins in the charts were on a downtrend at the time. While most of the coins have made a strong rebound recently, XRP is still seeing high volatility.
XRP’s price is not making any significant gains
Over the past 24 hours, XRP’s price has gained by around 6%. Over the past few days, many cryptocurrencies have been recovering, and XRP has attempted to cruise past critical barriers. The coin had a hard time breaking past the barrier at $0.604, but during the past 24 hours, it has managed to do so and reached $0.62.
The volatility also seems to be winding down. The current gains are hovering between 5% and 6%; hence, there could be a long way ahead in the price movement for XRP. Currently, the gains are attributed to market support, but buying pressure could also play a role. Increased buying support could make XRP’s price shoot by 20%, bringing its value to between $0.75 and $0.80.
The 50-day simple moving average lies within the $0.773 supply zone. If the current market support will support XRP to reach these levels, there is a chance that this is where the uptrend will stop. This caps the short-term gains for XRP at around 20%.
XRP’s downtrend could also come
Now that XRP is past the $0.605 barrier, a bullish pattern has been formed. However, this level could also act as support, and if the current market bulls fail, XRP could drop to this level again. If it fails to hold, further dips could be on the way.
A dip below this price could lead to XRP going lower towards $0.52. Such dips could come from increased selling pressure from short-term traders. Such a crash could push the coin’s price even lower than recorded during this month’s bears.
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