XRP Dominance Sits Just Below Key Level
Crypto analyst Jaydee recently shared an intriguing chart of XRP on social media. The chart examines the historical and potential future price actions of XRP, focusing on its dominance in the cryptocurrency market. The chart reveals a falling trend line and a horizontal resistance line, with a critical XRP dominance level at 2.62% that could be crucial for the price’s next parabolic move.
Looking back at the historical performance of XRP, there have been instances where the token experienced significant increases and drops in terms of market dominance. However, every time XRP approached or touched the yellow 5.5-year trend line, it faced strong resistance and experienced significant price declines.
A similar situation occurred from 2015 to 2017 when XRP’s dominance was held below a falling trend line for over two years. However, once the trend line was broken, there was a massive price surge as XRP dominance rose from 1% to above 30% in just four months.
Currently, XRP seems to be in a similar situation as in 2017, breaking the trend and moving beyond the red trend line. However, it now faces the pivotal 2.62% mark for dominance. According to Jaydee’s chart, it is currently at 2.55%, just below the critical level. If XRP surpasses this threshold, it could signal the start of the next parabolic ascent.
Weekly Chart: When ‘Moon’?
Jaydee also shared another chart on social media regarding the weekly XRP/USD chart. He notes that XRP is creating higher highs in price while lower lows in RSI and SRSI on the weekly timeframe, bouncing off the 2-year trend line. From this analysis, Jaydee identifies three key factors that need to occur before XRP can “moon.”
First, XRP needs to gather momentum and break past the $0.54 mark, at least on the daily chart. Second, the Stochastic RSI for the weekly timeframe should cross the 20-level, indicating potential for a bullish move. Lastly, breaking the yellow 6-year trendline is crucial for XRP to witness a parabolic move.
As of now, XRP is trading at 0.5198.
Hot Take: XRP’s Dominance Level Holds the Key
XRP’s dominance level in the cryptocurrency market is currently a critical factor that could determine its future price movements. The historical chart analysis by Jaydee highlights the significance of the falling trend line and horizontal resistance line in relation to XRP’s dominance. Breaking these lines has historically led to significant price surges, while being rejected at these levels has resulted in downward price actions.
The current situation with XRP’s dominance level being just below the pivotal 2.62% mark raises anticipation for a potential parabolic move. If XRP manages to surpass this threshold, it could signal a bullish trend and set the stage for significant price growth. Traders and investors will be closely watching these levels to gauge XRP’s future trajectory.
By
By
By