XRP price has rebounded since the March crash and looks to tackle key resistance in an attempt to reclaim the $0.30 level.
Recently, altcoins have been showing strength as Bitcoin (BTC) has just broken a key resistance level. Notably, ChainLink (LINK) and Tezos (XTZ) have been moving up more than 150% in the past month.
However, in the recent week, Stellar Lumens (XLM) have been surging upwards, while XRP price is also starting to look stronger on the charts. Can we expect substantial altcoin movements in the coming weeks? Let’s take a look at the charts.
Crypto market daily performance. Source: Coin360
USDT pair holds crucial level for XRP
XRP USDT 12-hour chart. Source: TradingView
The 12-hour chart is showing a promising support/resistance flip of the $0.1775 area. The crash on Black Thursday was also devastating for holders of XRP as the price dropped below the $0.12 level for a few hours.
However, since then, the price of XRP has been rallying upwards through substantial support/resistance flips. The recent movements are showing that the crucial area of $0.1775 is holding as support and setting up for more upside for XRP.
The main resistance level to break for the XRP price would be the red zone between $0.2025-0.2125. A break of this level would likely push the price towards $0.2475 and possibly higher at $0.2775.
XRP holds final support level for any bullish perspective
XRP USD 2-day chart. Source: TradingView
The 2-day chart is showing a significant support level of around $0.145, which had to hold to sustain the positive momentum. However, the chart is also showing that the trend is still substantially downwards based given the lower lows and lower highs.
However, by holding the support level at $0.145, a possible test of the range high can occur, which is found at the $0.328-0.33 area.
Remarkably, in the past cycle of 2015-2017, a similar move occurred where XRP price made a full retrace to the support levels before a massive surge. This support area held, after which accumulation started, resulting in a massive breakout to $3 in January 2018.
The current price action is also starting to look similar, though it took longer to retrace. But that’s normal as markets mature and, therefore, need more time to bottom out and start a new cycle.
A test of the $0.33 area would confirm an accumulation and sideways range as the signs are indeed starting to improve.
BTC pair flips back crucial level into support
XRP BTC 1-day chart. Source: TradingView
The daily chart of XRP lost an essential level earlier at 0.00002500-0.00002525 satoshis. Within a few days, the price of XRP reclaimed the level and is currently testing it as support.
Confirming this level as support (heavily depending on any substantial volatile movements of Bitcoin (BTC) suggests that further upwards momentum can be expected for XRP price. At the same time, the price of XRP needs to make a higher high to sustain momentum.
For that, support at 0.00002500-0.00002525 satoshis needs to hold for support, after which the resistance levels will be tested. The first resistance levels to watch for are 0.00002890-0.00002925 satoshis and 0.00003300-0.00003350 satoshis.
The main bullish signal would be a clear breakout of this range above 0.00003800 satoshis, but that is still far away from the current price of XRP.
XLM leading XRP in recent movements with a 28% surge
XLM BTC 1-day chart. Source: TradingView
The Stellar Lumens (XLM) chart is showing a clear range between 0.00000560-0.00000590 satoshis and 0.00000840-0.00000950 satoshis. This range has been providing resistance and support for ten months already when the price moved into these zones in July 2019.
However, recently, XLM has been showing strength as the price of XLM surged 28% in the past four days. Not only that, but the price of XLM is also attempting to break the range resistance, which is a crucial signal for bull/bear momentum similar to XRP.
An apparent breakthrough of the 0.00000850-0.00000935 satoshis level would create further upwards momentum, targeting the next resistance zone at 0.00001400 satoshis. Aside from that, breaking the 0.00000835 satoshis level would result in the first higher high in more than eighteen months.
But if the price of XLM can’t break through the resistance in one go, the retests will be crucial to see whether buyers are stepping in.
XLM BTC 1-day chart. Source: TradingView
The chart is providing clear levels to watch if the price of XLM can’t break through the resistance area upon the first attempt, which seems likely.
As there’s been such a massive pump, support levels can be found substantially lower in the chart. The primary levels to watch for support are 0.00000718-0.00000722 satoshis and 0.00000680-0.00000685 satoshis.
If either of these levels provides support, then buyers will likely step in. Such a move should warrant further upwards momentum.
XLM USDT 1-day chart. Source: TradingView
Meanwhile, the USDT chart for Stellar Lumens is showing a clear breakout of the resistance level at $0.054. This breakout led to a significant surge in price as the price of XLM rallied towards $0.065.
This move grants a 155% surge since the low of March 12, also known as Black Thursday. However, is the rally over for now? No, because after such a breakout and surge, the dips will likely be bought up given the current uptrend.
An apparent retest of the previous resistance level at $0.054 would provide the most likely entry for traders to step in. Resistance levels are found significantly higher, with the first level lying at $0.074 and the second one at $0.08.
However, if this push fails to hold the $0.054 level for support, further tests to the downside are likely to occur. The primary level to watch for will then be the $0.04-0.043 zone.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
