Can XRP worth rise 180% once more if it breaks the two yr downtrend?

While many altcoins have shown significant strength in the past few weeks, some have lagged. One of those coins is XRP (XRP), which is still hovering around key support and has not shown any upward pressure lately.

What exactly is XRP holding below the descending trendline? Let’s find out through the diagrams.

Daily performance of the crypto market. Source: Coin360

XRP / BTC is facing a 2 year downtrend

XRP BTC 12 hour chart. Source: TradingView

The XRP / BTC chart shows the digital asset currently trying to break the significant downtrend line. Lately, many altcoins have broken out of their downtrends, and notable examples include Ethereum Classic (ETC), Cardano (ADA), and more recently Icon (ICX).

The ripple appears to be lagging behind, but it could also expect a significant move.

XRP BTC 4-hour chart. Source: TradingView

The 4-hour chart shows a clear breakout of a 2-month downtrend. This outbreak was retested a few days ago at 0.00002660 satoshis. Currently, XRP is facing the next big hurdle in the red area around 0.00002950-0.00003000 Satoshis.

Breaking this level will apparently lower the price towards the next hurdle and potentially attract more investors to get into this coin. The next target is in the Satoshis area of ​​0.00003750.

Is XRP ready for a 180% pull?

XRP BTC 1-day chart. Source: TradingView

If you look at the daily XRP chart, you can see that more upside potential can be achieved.

The last time XRP broke such a huge downtrend, the price soared 180%. A similar breakout and movement would result in a target zone of 0.00006600 satoshis. It would be no surprise to see such a move as XRP usually takes a quick jump with no backtracking in a matter of days.

As the graph shows, the previous outbreak resulted in a 180% spike in September 2018. After that, the price stabilizes and does not reach any higher highs.

The next step is to evaluate which signals the XRP / USD chart is now blinking.

XRP / USD breaks its 2 year downtrend

XRP USD 2-day chart. Source: TradingView

The XRP / USD pair leads the XRP / BTC pair as it has already broken the 2 year downtrend. However, does this provide a rationale for being bullish at this point? Light. Despite recent advances, there is still a major hurdle to overcome before a real upward move can begin.

The $ 0.30 resistance level (red horizontal rectangle) needs to be broken first. That level was a support for a considerable time in 2018 and 2019, and now it needs to be broken. If the XRP can get past this level, a new rally towards the next resistance zone around $ 0.55 is likely to take place.

XRP looks identical to January 2016

XRP USD 3-day chart. Source: TradingView

Many similarities can also be found between today’s price development and the market structure of XPR at the beginning of 2016. The same similarities are shown in the XRP graph. The price for XRP fell below support in 2015. This split resulted in a significant increase of 200% and the breakout of a downtrend.

After that, the price stabilized sideways before the big increase started at the end of 2017.

A similar movement has occurred with XRP in the past few months. A breakdown of the significant support at $ 0.30, causing a drop to the next support level at $ 0.17. Notably, a similar downtrend is currently being tested. In addition, XRP tries to return to the area.

If a similar move occurs, a rally towards $ 0.55 is on the table and is likely to happen after XRP breaks $ 0.30.

Will Stellar Lumens XRP follow suit?

When XRP moves, Stellar Lumens (XLM) usually follows. The XLM / BTC pair shows signals similar to the XRP chart.

XLM BTC 1-day chart. Source: TradingView

The XLM chart shows a cycle low in September, after which a new test took place in January 2020. This retest caused a rally towards 0.00000750 satoshis which was temporary resistance. The price stabilized in the blue rectangle showing a successful S / R flip.

If buyers step in and the momentum turns up, a continuation towards 0.00000950 satoshis is a great way to look for it.

XLM BTC 4-day chart. Source: TradingView

The 4-day chart shows the entire XLM cycle since it was first listed. Stellar Lumens fully retraced the bull cycle in 2017 and found support there.

The main similarity with XRP is the repeat test performed at this level in January. a confirmation that support is found at this level and buyers step in.

Interestingly, there is a massive gap in the graphic. XLM’s first resistance to BTC is the Satoshis level of 0.00000910. However, crossing this level would mean a continuation of 0.00002050 satoshis as the next resistance – a move of more than 200% from the current price level.

XLM / USD is facing a 2 year downtrend

XLM USD 4 day chart. Source: TradingView

The XLM / USD chart shows a significant 2 year downtrend. Remarkably, the support is at the level before the big surge in December 2017, and after that the price of Stellar Lumens rose from $ 0.04 to $ 0.065, confirming the $ 0.053 support.

What would happen if Stellar Lumens price breaks the 2 year old downtrend? It is likely that the red lines (in the table) will continue.

The first target zone from here would be $ 0.09, but a move towards $ 0.187-0.19 is also on the table. Such a move would mean an increase of more than 200% from here.

Is that to be expected unnaturally? Not at all as we’ve seen similar moves from other cryptocurrencies over the past week. A breakout of such a downtrend often leads to massive volatility and strong trend reversals.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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