Ripple’s cross-border payments coin XRP has reached a critical resistance level today. Will the momentum continue, or is it a bull trap?
XRP is one of the top ten’s top performing cryptocurrencies today. It hit a six-week high of $0.404 an hour or so ago during the morning hours of Jan. 16.
This is the highest the asset has traded for since late November 2022, when it reached a similar price level.
The $0.40 zone is a crucial resistance area for the asset, which it failed to break above six weeks ago.
Furthermore, the coin has made 5% over the past 12 hours. This has seen it outperform the major assets above, including BNB, ETH, and BTC.
XRP Long-Term Opportunities
The longer-term view for XRP shows a more appealing buying opportunity at current levels. Technical analysts have targeted $0.445 as a bullish breakout level to catalyze more momentum.
Nevertheless, its next short-term move will likely be governed by what Bitcoin does next. BTC has made 27% on the week, wiping out all losses that followed the FTX collapse.
If it is the bear trap that some analysts have suggested, the rally will be short-lived. If it pans out, this will likely result in declines for all cryptocurrencies, including XRP.
Even some Ripple aficionados think the bottom is not yet in for the current market cycle.
Furthermore, there has been an uptick in Ripple on-chain activity. Late last week, analytics provider Santiment reported that XRP was continuing 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 big social dominance spikes leading to $XRP price gains.”
Ripple Case Continues
The long, drawn-out case with the SEC continues to draw attention. Furthermore, any serious price action for XRP will be driven by the case’s outcome, which could still be several months away.
On Jan. 13, Crypto Law founder and pro-XRP campaigner John E. Deaton predicted that the case would not settle until after a decision from Judge Torres.
After drawing the ire of the XRP Army, Ripple’s fanatical community, he followed it up by stating:
“A settlement could occur after which would eliminate any potential jury trial and also eliminate any potential appeal.”
A positive outcome would not only be good for the fintech firm and XRP holders, but for the entire crypto ecosystem.
Disclaimer
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