Bitcoin (BTC) has been in the spotlight in recent months, but altcoins have finally started to follow the number one cryptocurrency. Several large caps have done double-digit runs in the days preceding, resulting in a mini-season.
Not only did Ether (ETH) surge above $ 500, Litecoin (LTC) also gained 40% the week before. However, XRP (XRP) is currently in the spotlight with a daily rally of over 20% and a new annual high after gaining over 50% last week.
XRP Breaks Crucial Resistance at $ 0.30
The higher timeframes show a crucial breakthrough for XRP as the resistance area at $ 0.30 has provided resistance throughout the past year.
A breakout like this is essential for more bullish momentum as it means that a new higher high and a new annual high has been reached.
Such a high level increases the likelihood of a further uptrend while potentially establishing a new support level in the previous resistance area of $ 0.30.
If this area switches to support, a new range is set for XRP, and the trend may reverse for the first time in three years.
Key levels to watch in the XRP / USD pair
The XRP price chart shows massive movement over the previous days. As an investor, you should be aware of FOMO and perhaps avoid jumping after such a decision.
This obviously includes XRP, especially after a massive FOMO candle, after which a strong correction usually occurs.
These corrections are fascinating to watch for a downward buying approach as it presents huge opportunities.
The levels to watch are clearly above the current price where multiple resistances are found, the most critical being $ 0.4275 and $ 0.495.
If the price of XRP corrects, the support area to watch for a possible support / resistance reversal is at $ 0.33 and the range is $ 0.29-0.31.
If these sustain the support, a great opportunity for the next move could be created.
Bitcoin dominance shows possible peak
Bitcoin’s market cap dominance is finally showing signs of a higher potential construction, as it is currently on the decline. History has provided interesting data for this account. The fourth quarter is often painful for altcoins, after which a prominent build is usually seen for BTC.
However, if Bitcoin starts to correct, altcoins will likely fall along with Bitcoin. This would push Bitcoin’s dominance back above 67%.
Historical data shows such highs in December, which appears to be the case during this period.
If so, altcoins will have a massive first quarter or ‘extra season’ in 2021.
Levels to watch in XRP / BTC
XRP’s BTC pair is showing clear signals for a potential reversal. Currently, XRP / BTC is testing the previous range of support for resistance. If it rejects here, a support / resistance flip would be bearish.
In this regard, there are a few levels and scenarios to watch out for for a possible further upside.
The first is the support / resistance flip of the 0.00002250-0.00002350 sats area. This area is currently playing the role of resistance, but once it turns around for support, a hold at 0.00003200 sats is likely.
The second scenario is the support / resistance reversal of the 0.00001900 area. If this toggles, a higher minimum is set and a test of the 0.00002300 sats area could occur again.
In general, the market looks more favorable by the day which could lead to massive gains for altcoins at all levels in the coming months.
The views and opinions expressed herein are solely those of author and do not necessarily reflect the views of TBEN. Every investment and trading move involves risk. You need to do your own research when making a decision.