Further gains for BTC above $ 51,000 could trigger XRP’s move to a new 4-month high.
XRP is trading around $ 1.32, almost 6% higher on the day, after a slight sell-off made necessary by traders ‘ profit-taking across the market.
But like most of the top 10 cryptocurrencies in terms of market capitalization, XRP’s price is holding above a critical support level that could serve as a springboard for further gains in the week.
For now, Bitcoin’s strong rise above $ 51,000 and Ethereum’s flirtation with the $ 4,000 price level have boosted crypto market sentiment. The positive outlook could trigger an upward bounce in the price of XRP, which could mean a re – test of the resistance zone above $1.50.
XRP price analysis
The bullish outlook for XRP were highlighted by the best crypto analyst CrediBULL Crypto. The pseudonymous trader recently pointed to XRP/USD breaking above the $ 1.25 level as the move that helped the upside clear above a major supply area. The upside also included a new test of the downtrend line to add to the potential reversal towards $1.50.
Another analyst, Ali Martinez, noted that Ripple’s native token is ready for “another step up” given the growth prospects of the cryptocurrency’s network. According to the analyst, the potential for an upward trend is suggested by network activity that has seen a peak 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 # 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 XRP/USD chart, we observe that the 0.618 Fibonacci retracement level of the macro move from $ 1.99 to $ 0.48 is a key barrier around $1.41. If the bulls manage to clear this hurdle, the next target will be the $ 1.50 mark, with further targets around the Fib 0.786 level currently located around $1.67.
Daily XRP/USD chart. Source : TradingView
On the downside, bearers might consider a new test of the Fib 0.5 level ($1.24) and probably the Fib 0.382 level at $1.06.
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