XRP price has exceeded $1 for the first time in 37 months, as major altcoins are starting to follow Ethereum. What's behind this new rally?
April 6, 2021 | AtoZ Markets – The price of XRP exceeded $1 on April 6 for the first time since March 2018 , putting its market value at around $47 billion.
In addition, the fourth largest cryptocurrency in the global market has broken out against the Bitcoin (BTC) pair , giving it a significant technical boost.
Mainly a technical rally, without many fundamentals
When XRP was hovering around $0.75, cryptocurrency traders noted that XRP's market structure was optimistic.
Cantering Clark, a cryptocurrency derivative dealer, said XRP has all the technical components to recover. Since then, the XRP has risen from $0.75 to more than $1.
On April 6, Clark said:
"No wonder, the $XRP technically took all the necessary steps to be optimistic. After the withdrawal of exchanges and write-off by the majority of CT, this essentially left the market sold both positionally and marginally. This could go up a lot more."
Another well-known trader, called "Kaleo", noted that the breakdown of XRP against Bitcoin is particularly optimistic.
After its breakdown above $1, Kaleo explained that XRP is about to exit a 3-year bearish trend against Bitcoin. He noticed:
"$XRP/$BTC is about to emerge from a downward trend of more than 3 years. Zero exposure here seems irresponsible. When that shit starts pumping, it makes vertical movements (meaning, all at once for an explosion). Still too early."
Social volume is growing
Another catalyst behind XRP at the top of the technical momentum has been its growing social volume.
According to analysts at Santiment, a data analysis platform, the social volume of XRP has been growing rapidly along with several other cryptocurrencies.
"Most have maintained their upward trend earlier in the week, with no greater increase among the top 100 assets than what we saw in $STX, which is registering a 5-month high in social volume. XRP, $XTZ, $FTM and $BTG. "
If the technical structure of the XRP remains intact and the social volume remains consistently high, the XRP's momentum could potentially lead the cryptocurrency to the next main resistance area.
Technically, the next resistance level is around $1.20 with a $2 macro selling wall, dating back to December 2017.
Think we missed something? Let us know in the comment section below.