Volatility Returns to Crypto Market as XRP Price Surges
The price of XRP and other major cryptocurrencies is experiencing a resurgence, with the XRP price reaching new year highs. Currently trading at $0.57, XRP has seen a 9% increase in the last 24 hours and a 16% spike in the past week. This upward trend closely follows the price action of Bitcoin and Ethereum, which have recorded profits of 22% and 16% respectively over the same period.
XRP Price Approaches Critical Level
An XRP trader on social media has identified that the token’s price has surpassed the critical resistance level of $0.528. The analyst predicts that there is a high chance of XRP rising to around $0.60 in the short term. Looking at historical data, the analyst compares the current XRP price with the 2017 bull run and believes that $0.66 will be the next critical resistance level.
During the 2017 run, XRP closed above the weekly Ichimoku Cloud, indicating significant resistance and support levels. Breaking above this level allowed for rapid growth and price discovery. The trader emphasizes that if the weekly Ichimoku close is above the clouds, similar to what happened in 2017 and 2021, it could lead to further gains.
Crypto Market Primed for Higher Levels
A report from Bitfinex Alpha suggests that the crypto market is susceptible to “new narratives,” particularly regarding the potential approval of a spot Bitcoin Exchange Traded Fund (ETF) in the US. As XRP and other cryptocurrencies continue their upward trajectory, volatility in the sector is expected to remain high.
The report also highlights an increase in on-chain activity, which historically supports higher prices. By analyzing Spent Output Age Bands (SOAB), the research firm can determine which group of investors is influencing market changes. This data suggests that higher volatility will persist and potentially grow in the coming months.
Image by Unsplash, charts by Bitfinex Alpha, Dark Defender, and Tradingview
Hot Take: XRP Price Surges Towards Resistance Level
The XRP price has experienced a significant surge, approaching its next resistance level. With a 9% increase in the last 24 hours and a 16% spike in the past week, XRP is following the upward trend set by Bitcoin and Ethereum. A trader on social media predicts that XRP could rise to around $0.60 in the short term, with $0.66 being the next critical resistance level.
The market’s susceptibility to new narratives, such as the potential approval of a Bitcoin ETF in the US, adds to the volatility in the crypto sector. On-chain activity also supports this conclusion, indicating that higher volatility is here to stay. As XRP continues its upward trajectory, it is poised for further gains.
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