Ripple’s cross-border payment coin XRP has reached an important resistance level today. Will the momentum continue, or is it a bull trap?
XRP is one of the top ten top performing cryptocurrencies today. It hit a six-week high of $0.404 an hour or so earlier during the morning of January 16.
This is the highest level for the asset since November 2022, when it reached the same price level.
The $0.40 zone is a key resistance area for the asset, which it failed to break six weeks ago.
Furthermore, the coin has made 5% in the last 12 hours. This has seen the above leading assets including BNB, ETH and BTC outperform.
XRP Long Term Opportunities
The long-term outlook for XRP shows more attractive buying opportunities at current levels. Technical analysts are targeting $0.445 as a bullish breakout level to catalyze more momentum.
Still, its next short-term move will likely be what bitcoin does next. BTC has gained 27% on the week, erasing all losses following the FTX collapse.
If this is a bear trap as some analysts have suggested, then the rally will be short-lived. If this expires, it could result in the downfall of all cryptocurrencies including XRP.
Even some Ripple aficionados feel that the bottom has not yet come for the current market cycle.
Furthermore, Ripple on-chain activity has picked up. Late last week, analytics provider Sentiment Reported that XRP continued to show gains, adding:
“In part, this is due to a major pump in address activity over the past week. We have also seen a pattern of large social dominance spikes leading to $XRP price gains.
Ripple case continues
The long, drawn-out case with the SEC continues to attract attention. Furthermore, any serious price action for XRP will be driven by the outcome of the case, which could still be several months away.
On January 13, Crypto Law founder and pro-XRP campaigner John E. Deaton predicted that the case would not be resolved until after Judge Torres’ decision.
After drawing the ire of Ripple’s fanatical community, the XRP Army, they followed by stating,
“A settlement can be reached after which any potential jury trial will be eliminated and any potential appeals will also be eliminated.”
A positive outcome would not only be good for fintech firms and XRP holders, but also for the entire crypto ecosystem.
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