XRP has shown notable signs of renewed bullish momentum in the market. It has recovered from a significant 11% price drop on April 12, which took the token to its lowest level of the year at $0.4230.
However, last week saw a solid 12% price rally as XRP outperformed the other top 10 altcoins in the market, behind only Solana (SOL) and Binance Coin (BNB).
Signs of a strong uptrend for XRP?
On Tuesday, XRP reached a high of $0.5571, demonstrating its optimism and outperforming its peers. This resurgence was accompanied by an increase in portfolio activitya positive sign for the token’s overall market sentiment.
According to According to network intelligence platform Santiment, the number of wallets containing at least 1 million XRP has increased steadily over the past six weeks, increasing by 3.1%. Now there is only one wallet left to reach the all-time high (ATH).
Additionally, crypto analyst Ali Martinez reported a notable buying spree among XRP whales, who purchased more than 31 million tokens last week alone. This contributed to cryptocurrency price recoveryemphasizing renewed confidence in its upward trend prospects.
Considering the price action, market analyst Egrag Crypto points that XRP formed a double bottom pattern, considered a strong bullish signal. This pattern, combined with the transition from the consolidation zone to a supply zone and from the absorption area to a demand and accumulation zone, indicates a promising outlook for the token, according to the analyst.
Egrag Crypto is confident that a significant price increase or “pulse” is imminent, and the analyst has upgraded his target to $1.4 for XRP.
Critical resistance levels to watch out for
Despite initial optimistic outlook for XRP, the token has returned to the $0.5474 price level at the time of writing, accompanied by a 14% decrease in market capitalization over the last 30 days.
Furthermore, as XRP aims to reach higher levels, potential resistance barriers could impede the token’s recovery and uptrend. Analysis of the XRP/USD chart below reveals immediate resistance at $0.5644, which prevented consolidation above current levels last week.
After that, the final hurdle before a retest of the $0.600 zone is at the $0.5884 level. This level previously served as support floor for the token, leading to a rally during the uptrend seen in March that took XRP to its yearly high of $0.745.
On the other hand, monitoring the support levels at $0.52910, $0.5184, and $0.5044 is crucial. If a bearish scenario develops in the coming days, these levels could prevent XRP from falling below $0.500.
Featured image from Shutterstock, chart from TradingView.com
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