XRP slows down before reaching $2.90.
If it breaks through that resistance with volume, it would go to the $3.80 area, its ATH.
XRP surpassed the $2.60 line in the last 24 hours and thus strongly broke the bullish pennant that had been forming since December.
Now, the cryptocurrency issued by Ripple Labs faces key resistance, which would allow it to go in search of all-time highs.
As CriptoNoticias has reported, XRP is one of the most prominent coins in this bullish cycle. After Donald Trump’s victory in the presidential elections, the digital currency skyrocketed and was once again trading at levels not seen more than 7 years ago.
After reaching $2.90, the cryptocurrency entered a price compression phase, where highs and lows converged until forming a triangular figure known as a bullish pennant.
It is a technical analysis pattern that arises when the prices of a digital asset consolidate after strong bullish momentum.
In the last 24 hours, The cryptocurrency strongly broke the figure and registered a rise of more than 10%. At the time of publishing this note, the price of XRP is $2.84.
Thanks to this good performance, the market capitalization of XRP For the first time in its history, it surpassed the barrier of 160 billion dollars.
Now, the price of the cryptocurrency issued by Ripple Labs is facing resistance at $2.90. If it exceeds it, the third most valuable asset in the market could go in search of $3.84, its all-time high (ATH).
As explained in the Cryptopedia, educational section of CriptoNoticias, in the technical analysis, Resistance is a term used to describe a price level that an asset has difficulty breaking.
These are points that tend to be repeated throughout the history of the asset, influenced by market psychology. It is important to note that old resistance levels become supports, and vice versa.
But what happens if XRP fails to break that resistance in the coming days? In case this happens, the pattern known as «cup with handle«, as shown below.
This pattern begins when the asset’s price records a drop, forming the left side of the figure. Then, a recovery occurs that takes the price to a new high, slightly higher than the previous one, creating a curve.
After this rise, the asset experiences a slight correction, which leads to the formation of the “handle” of the cup.
If the price breaks above the previous high, the pattern is considered complete and the asset is ready to resume its rise.
The concrete thing is that XRP investors have reason to remain expectant. The presidential inauguration of Donald Trump and the recent launch of RLUSD, Ripple Labs’ stablecoin, could act as a catalyst for the asset’s price.