Finally, Ripple’s XRP succeeds to initiate an uptrend after stepping out of the $0.18 zone where it has been trading sideways for a longer period of time. Since the start of this week, the fourth-ranked cryptocurrency has garnered over 20% so far. After showing a strong bullish performance so far this week, the coin seems to set up a massive price rally ahead but there is a barrier that may hinder this rally.
A Strong resistance barrier lies ahead
This week has been good for XRP as it has stepped into a bullish impulse which led the coin surge by 20%. Now, the cryptocurrency stands at a very vital point from where a single move can change the whole case scenario for the coin.
After registering an upswing this week, XRP is now facing a strong resistance barrier ahead. The token is trying to test the 200 DMA at the moment which is causing a hurdle for the coin to break out for a bullish rally. This was the critical barrier that last time stopped the coin from moving upward. XRP needs to convert this strong barrier into support if it wants to reach higher highs. Supposedly, if it happens, the coin might be able to register its high of $0.35 which was seen in mid-February.
A retracement expected to occur before further gains
Ripple’s XRP is aiming for higher highs now after the recent upswing. Institutional investors are also pulling the trigger for the coin to make further advancement. Recently, the $1.4 billion hedge fund founder said in a tweet that he has bought his first-ever digital currency this week that is XRP. This might give an edge to the coin.
However, there is one technical index that is suggesting a retracement to occur before the coin records higher highs. A very short-term bearish trend is expected to form once the coin pulls back. After that, it will be able to restart its uptrend. Currently, XRP is trading at $0.20 at the press time.