Ripple’s native token XRP is looking bullish again.
Psychology
The fourth-largest cryptocurrency by market capitalization was among the best performers Thursday as its price swelled by almost 24 percent in the previous 24 hours. The XRP/USD exchange rate established a new weekly high at $0.585, its gains driven alongside a general upside narrative across the cryptocurrency market.
The XRP pump began after Bitcoin, the world’s leading cryptocurrency by market valuation, jumped above a sough-after resistance level of $20,000. The BTC/USD’s upside move influenced rival tokens to tail the trend thanks to its long-standing positive correlation with top-cap altcoins.
Bitcoin corrects lower from its record high at $23,776. Source: BTCUSD on TradingView.com
For instance, the second-largest token, Ethereum, jumped 11.29 percent under Bitcoin’s influence.
But XRP’s gains outran others. That could be due to a recent partnership between IBM and Expertus Technologies, a Canadian fintech startup actively experimenting with XRP-backed Ripple Labs’ payment solutions.
Meanwhile, XRP may have also front-run the rally because it was already available cheaper than the other top tokens, especially after its 45 percent price crash from its yearly high of $0.79. Traders apprehensively anticipated an altcoin market bull run following Bitcoin’s move towards $20,000, focusing majorly on XRP for its cheaper valuation than the rest of the top-tier coins.
XRP Technical Outlook
The XRP/USD exchange rate jumped above a short-term descending trendline following its move Thursday, raising expectations of an extended upside run in the coming daily sessions.
It is because of the formation of two converging bullish patterns: a Falling Wedge and a Descending Parallel Channel. Both the technical indicators have the common resistance trendline (the one mentioned above). Meanwhile, they are bullish per their textbook descriptions, with each of them having their own upside targets for the underlying asset.
Ripple token rebounded by 34 percent in just two days of trading. Source: XRPUSD on TradingView.com
For instance, the Rising Wedge bull target for XRP/USD—currently—is near $0.79 (calculated from the maximum distance between the Wedge upper and lower trendlines). Similarly, the Descending Channel’s upside target is at $0.76.
Further adding strength to the bullish outlook is a moving average crossover. So it appears, the XRP/USD’s 4H chart is going to print a Golden Cross as its 20-period MA (green) closes above its 50-period MA (red). Traders consider a 20-50 MA crossover as a cue to increase their longs in the market.