Bitcoin (BTC) has been gaining prominence in recent months, but altcoins have finally started to follow cryptocurrency number one. Several high-cap currencies have been making double-digit gains in previous days, resulting in a mini altseason.
Not only did Ether (ETH) rise above $ 500, but Litecoin (LTC) also gained 40% in the previous week. However, XRP (XRP) is currently in the spotlight with a daily high of more than 20% and a new annual high after rising more than 50% last week.
XRP breaks crucial resistance at $ 0.30
The longer calendar shows a crucial XRP breakthrough, as the $ 0.30 resistance zone has provided resistance over the past year.
An advance like this is essential for a bullish momentum, because it means that a new higher high and a new annual high have been achieved.
This higher rise increases the likelihood of a new bullish trend, while potentially establishing a new level of support in the previous $ 0.30 resistance zone.
If that area becomes support, a new interval is established for XRP, and the trend could reverse for the first time in three years.
Essential levels to note in the XRP / USD pair
The XRP price chart shows a big movement in the previous days. As an investor, you should be aware of FOMO (“fear of being left out) and perhaps avoid jumping after such a move.
This obviously includes XRP, especially after a massive FOMO candle, after which a heavy correction normally occurs.
These corrections are fascinating for a buy-o-dive approach, as they present great opportunities.
The levels to be watched are clearly above the current price where several resistances are found, with $ 0.4275 and $ 0.495 being the most critical ones.
The levels to be observed are clearly above the current price, where several resistances are found, with $ 0.4275 and $ 0.495 being the most critical.
If the price of XRP is corrected, the support zone for observing a potential support / resistance flip is found at $ 0.33 and the $ 0.29-US0.31 range.
If the latter maintains support, a great opportunity for the next movement may be established.
Bitcoin dominance shows possible top
The dominance of Bitcoin’s market capitalization is finally showing signs of potential top construction as it is falling. The story provided interesting data around this narrative. The fourth quarter is often painful for altcoins, after which a top building is usually seen for BTC.
However, if Bitcoin starts to correct, altcoins are likely to fall with Bitcoin. This would push Bitcoin’s dominance above 67%.
Historical data show these peaks in December, which seems likely in this period.
If that is the case, altcoins will have a massive first quarter or “altseason” in 2021.
Levels to be observed for the XRP / BTC pair
The XRP BTC pair is showing clear signs for a potential reversal. Currently, XRP / BTC is testing the previous range of support for resistance. If he is rejected here, a support / resistance flip would be pessimistic.
In that sense, there are some levels and scenarios to observe a possible upward continuation.
The first is the support / resistance inversion of the 0.00002250-0.00002350 sats area. This area is currently acting as resistance, but once it switches to support, a continuation to 0.00003200 sats is likely.
The second scenario is the inversion of support / resistance in the area of 0.00001900. If it reverses, a higher minimum is set and a test of the 0.00002300 sats area can occur again.
In general, the market looks more favorable every day, which could result in massive gains for altcoins at all levels in the coming months.
The views and opinions expressed here are exclusively those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You must conduct your own research when making a decision.