XRP has been caught within a tight consolidation pattern throughout the past few days, with its recent parabolic rally slowing down as bulls struggle to break above the resistance in the upper-$0.60 region.
The recent rally seen by the cryptocurrency came about after it broke above a long-held trading range between $0.20 and $0.30 that persisted for multiple years.
One trend that gave the crypto room to rally was the fact that Ripple – the company that is closely associated with the XRP token – stopped offloading their holdings each quarter, which previously created a strong headwind for the cryptocurrency.
Furthermore, an upcoming token airdrop that XRP holders will receive has also been a catalyst for upside.
It is now facing some intense resistance within the mid-$0.60 region that needs to be broken before continuing higher. Still, the mounting hype surrounding it does seem to indicate that upside is imminent.
One trader is now setting his sights on a move towards $1.00, noting that its technical strength coupled with mounting hype for the upcoming airdrop could spark and fuel this next leg higher.
XRP Stabilizes at $0.60 as Crypto Market’s Momentum Stalls
At the time of writing, XRP is trading down just over 1% at its current price of $0.60. This is around the price at which the cryptocurrency has been trading throughout the past few days.
Following its recent surge up to highs of $0.90, the cryptocurrency has been caught within a tight and unrelenting consolidation phase.
Until Bitcoin can resume its rally and set fresh all-time highs, altcoins like XRP may continue to see stagnating price action.
Analyst: XRP Likely to Rally Higher as Momentum Builds
One trader is expecting XRP’s price to consolidate further before posting another massive upsurge. He is specifically looking towards it seeing a move up towards $0.97.
According to him, the upcoming Flare Networks Spark Token to XRP holders may also be an impetus for upside.
“XRP looks like she is prepping for a move towards .93-.97c imo. Below was the lows. Airdrop coming up expecting a little more fomo leading into it.”
Image Courtesy of Pentoshi. Source: XRPUSD on TradingView.
The coming few days should shine a light on XRP’s near-term outlook, as any Bitcoin weakness could invalidate its bullish outlook and lead to downside.
Featured image from Unsplash. Charts from TradingView.
