Extended Ripple Rally Sees XRP Gearing Towards $1 Breakout

Ripple stands as a cryptocurrency with many opinions about it floating around the crypto space. Some see it as the greatest crypto to ever exist, others hate it, and many simply don’t think about the currency, one way or another. Now, however, things are looking up for XRP, as the cryptocurrency is currently trading above the $0.6 mark even after the weekend session.

It seems, much like Bitcoin is now, the XRP token is seeing itself in a consolidation phase, but predictions are abound that the currency will reach that coveted tipping point, and do so soon.

Big Potential With Many Barriers

As it stands now, XRP is hovering at around $0.60. The coin is fighting for every inch of upward movement at the 50 Simple Moving Average within the 4-hour chart. In order to trigger the next breakout hurdle at $0.65, the coin first needs to sustain the uptrend by settling above that moving average. From there, bulls need to square up to go to the mythical $1 mark, first needing to push past the $0.7 and $0.75 supply, respectively.

That same 4-hour timeframe’s Relative Strength Index, or RSI, makes it clear that sellers at this time boast the high ground. Should the sellers continue to maintain this negative gradient under said midline, XRP could face a breakdown of considerable proportions, though let’s not fret about that just yet.

Dangling Above Risk Of Breakdown

Another key factor when it comes to XRP breaking past that fabled $1 mark is the XRP/USD pair. This pair needs to hold above the Bollinger Bands’ boundary in order to avoid enough losses to completely refresh the 100 SMA support at $0.57. Another thing to worry about is the constriction of the Bollinger Bands, potentially causing a breakdown.

Should this happen, all the progress made since the coin dropped to $0.45 would be null and void. The upside is, the 200 SMA stands ready to take some of the selling pressure off the market. With the chances of the XRP token getting a correction, it’s good to know that the coin might not plummet as far as it potentially would.

Bitcoin Bull Run After Massive Market Crash

The XRP bull run is going in tandem with the overall bull run of the Bitcoin (BTC). The year of 2020 was a chaotic one, fraught with all sorts of turmoils, but for Bitcoin it’s been quite a productive year, all things considered. While March saw the coin see a catastrophic drop in market price, halving itself in value and wiping out millions of USD in value in a week, the space has recovered to brand new highs.

In some exchanges, Bitcoin had been traded above the recorded all-time-high, albeit briefly. Naturally, when the flagship cryptocurrency for the entire space gains success, everything else is dragged along with it. The entire crypto space is going on a very positive note, with hints that the Bitcoin might even go past $20,000 before the year’s end.

Remember, all trading carries risk. Past performance is no guarantee of future results.

A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.