Fresh gains for BTC above $51,000 could trigger XRP’s move towards a new 4-month high
XRP is trading around $1.32, close to 6% up on the day after a slight sell-off necessitated by traders taking profit across the market.
But like most cryptocurrencies in the top 10 by market cap, XRP price is holding above a critical support level that could act as a springboard for further gains in the week.
At the moment, Bitcoin’s strong move above $51,000 and Ethereum’s flirtation with the $4,000 price level have buoyed crypto market sentiment. The positive outlook might trigger an upward bounce for XRP price, which might mean a retest of the resistance zone above $1.50.
XRP price analysis
The bullish outlook for XRP has been highlighted by top crypto analyst CrediBULL Crypto. The pseudonymous trader recently pointed out XRP/USD’s break above the $1.25 level as the move that helped bulls clear above a major supply zone. The upside also included a retest of the downtrend line to add to the potential flip towards $1.50.
Another analyst, Ali Martinez, has noted that Ripple’s native token is poised for “another leg up” given the outlook of the cryptocurrency’s network growth. Per the analyst, the potential for an uptrend is suggested by the network activity that has spiked in recent weeks.
$XRP is ready for another leg up! 🚀
Network growth is one of the most accurate price foreshadowers as it shows an increase in user adoption over time.
The uptrend in #XRP network growth could soon be reflected on prices, resulting in a bullish breakout. pic.twitter.com/mnhpXi596v
— Ali Martinez (@ali_charts) September 6, 2021
Notably, user adoption of XRP has continued despite the negative impact of the SEC’s lawsuit against Ripple Labs and the company’s top executives.
Looking at the daily chart for XRP/USD we observe that the 0.618 Fibonacci retracement level of the macro move from $1.99 to $0.48 provides a key barrier around $1.41. If bulls manage to clear this hurdle, the next target would be the $1.50 mark, with further targets sitting around the 0.786 Fib level currently located around $1.67.
XRP/USD daily chart. Source: TradingView
On the downside, bears might eye a retest of the 0.5 Fib level ($1.24) and probably the 0.382 Fib level at $1.06.
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