Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
XRP, one of the leading cryptocurrencies by market cap, has managed to decouple from the broader market in a blow to those who expected the controversial Ripple-linked token to keep languishing against Bitcoin (BTC) and other leading altcoins.
The digital asset, which keeps attracting headlines due to new adoption milestones, has spiked by almost 5% over the past 24 hours, CoinGecko data shows.
According to crypto analyst "Dom" (@traderview2), the current surge could pave the way for a powerful rally. However, for this to happen, XRP bulls have to gain a strong foothold above the $1.45 level.
"Let me make it very simple. Over $1.45 aream things can move very fast. Acceptance above, not just peaking," the commentator said.
The magic price level
For months, the $1.40 to $1.45 region has acted as an extremely dense resistance zone.
This area is packed with historical trading activity. Millions of tokens changed hands here, which has created a thick ceiling of supply.
At the same time, there is a massive gap in the volume profile stretching all the way up to the $1.80 region. Very little historical trading has taken place in this gap, so there is virtually no structural resistance.
If XRP simply wicks above $1.45 and immediately falls back down (peaking), the breakout fails. However, if the daily candles begin closing and consolidating above $1.45, XRP enters the aforementioned "void." Low liquidity will make it possible for the price to move upward all the way toward the next resistance.
Waking up from slumber
As of now, the XRP token is finally waking up from a multi-month slumber. following a steep decline from highs above $2.30 late last year.
XRP has been trapped in a choppy accumulation phase since the February bottom. The bulls have repeatedly faced harsh rejections every time it approached the $1.45 to $1.50 ceiling.
Now, XRP is decisively punching through the $1.45 resistance line.
Dan Burgin
U.Today Editorial Team
