XRP is struggling to overcome resistance that has hovered around $ 0.20 in the past two days, with crypto currently entering a consolidation phase as Bitcoin is traded sideways in the region at $ 7,000.
However, this lackluster trade shouldn’t last too long, as analysts now widely note that they expect the cryptocurrency to make a big move in the near term.
An analyst notes that although the XRP is showing signs of obvious weakness on its daily chart, its medium-term outlook could be bolstered by some bullish technical formations in which it is currently found.
XRP consolidates below $ 0.20 as technical outlook becomes hazy
As of this writing, XRP is trading nominally at its current price of $ 0.198, which is approximately the point at which the cryptocurrency has traded in the past two days.
It looks like $ 0.20 is a strong area of resistance for crypto, as it has faced several rejections at this level over the past week.
It is important to note that the token forms an upward triangle triangle pattern similar to that formed by Ethereum before its rally from $ 140 to $ 175, this pattern can potentially strengthen crypto in the short term.
A popular crypto analyst talked this technical formation in a recent tweet, noting that it is closely monitoring a bullish confirmation of this model, which would invalidate the weakness that crypto has expressed on its daily chart.
«XRP A certain weakness on a daily basis but so far, it is a consolidation under resistance with an upward break in the ascending triangle. Eyes on a break in the box, ”he said, referring to the model seen in the table below.
Crypto could be positioned for a “powerful pump”
As NewsBTC reported yesterday, the XRP tends to display a powerful pump every year, which resulted in a 167% increase in 2018 and a 50% increase in 2019.
According to analysis, the first high key resistance of the token is around 4,000 sats, which would mark a 50% increase over its current price region.
If this goal is met and exceeded, history shows that crypto could see a massive rally, as its last three parabolic hikes have been on average 555% of moves.
However, for this very upward trend to be confirmed, it is imperative that it be based on shorter timeframes, as persistent weakness could signal that further declines are imminent.
In addition, Bitcoin seeing positive price action will also be imperative for altcoins like XRP to experience any kind of immense momentum.
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