The entire crypto market has been on a tear over the past week, gaining dozens of percent. But altcoins like XRP, especially, have done rather well. In fact, the third-largest cryptocurrency over the past week gained over 15%, per data from Coin360.
Although this price surge has brought XRP to only $0.24, which means that it is still down by more than 93% from its all-time high above $3.00, analysts say this latest uptrend is a precursor to a larger move to the upside.
Related Reading: Ethereum’s Price is “Convincingly Bearish”: Here’s What Comes After 20% Week
Third-Largest Crypto Ready to Trend Higher, Analysts Suggest
Analyst CryptoWolf recently noted that per his earlier analysis, XRP has finally started to decisively break out of a falling wedge pattern that has constrained price action for the past seven months. The cryptocurrency has also surmounted a key horizontal resistance that has been important on a macro basis.
With this in mind, he suggested in the below chart that he expects for XRP to target the 0.382 Fibonacci Retracement of the entire falling wedge over the coming weeks, which suggests a 25% rally is on the horizon.
XRP breaking out. 🚀 pic.twitter.com/QIs4z3uWZ4
— CryptoWolf (@IamCryptoWolf) January 18, 2020
Related Reading: Research Firm: 3 Use Cases Could Send Bitcoin To $1 Trillion
XRP’s Surge Dependent on Bitcoin
While XRP is preparing to break higher as shown in the chart above, its price action is primarily dependent on that of BTC; if the leading cryptocurrency doesn’t rally, the altcoin won’t either.
But, fortunately for bulls of XRP, technicals and fundamentals suggest that Bitcoin will soon gain strength.
The current monthly Heiken-Ashi candle for January is printing a green Doji pattern, which would suggest that the long-term Bitcoin price trend is turning positive and that there is an imminent macro reversal on the horizon.
Below is a chart from NewsBTC, showing every time the Heiken Ashi candles flipped from red to green on a monthly basis for BTC. The chart shows that green monthly Heiken Ashi candles have almost always resulted in parabolic surges that brought BTC thousands of percent higher than where it started.
Per a recent report from Glassnode, a crypto and blockchain analytics firm, the BTC network’s mean hash rate (per a one-day rolling moving average) has just reached a 1-year high of 125 exahashes.
📈 $BTC Mean Hash Rate (1d MA) just reached 1-year high of 125,058,646,627,207,626,752.000
(Previous 1-year high of 122,916,246,977,853,194,240.000 was observed on 05 January 2020)
View metric:https://t.co/8zrAyUe7NJ pic.twitter.com/cHSg2O7Iru
— glassnode alerts (@glassnodealerts) January 17, 2020
While there isn’t an instant correlation between Bitcoin’s hash rate and prices, the fact that miners continue to siphon resources into mining crypto assets bodes well for the long-term trend of this space.
Featured Image from Shutterstock
