Over the past 24 hours, multiple large-cap altcoins have posted some major gains. However, XRP wasn’t a part of the rally as the token gained just 0.40%. It seems that XRP has entered a consolidation phase.
Even though the second quarter of the year wasn’t very promising for XRP, the token was one of the best performers last month.
The token has also shown a greater correlation with Bitcoin despite some ups and downs in the past. Per data from Coinmetrics, the BTC-XRP correlation remained at a familiar 0.819, at the time of writing.
With a profitable last week, XRP had settled into a descending channel formation with the possibility of an upward breakout, but the local resistance at $0.31 seems to be a challenge for the bulls as it has already been tested a couple of times.
However, technical indicators are hinting at a bullish breakout from the descending channel the token has been since the start of the month.
The MACD indicator underwent a bullish crossover while the RSI remained neutral, with a chance of sliding into the overbought zone.
According to a chart posted by crypto analyst Credible Crypto, XRP is expected to consolidate above the $0.27-0.285 support and could climb as high as $0.40 once the resistance at $0.31 is broken.
Similar opinions were voiced by another trader who believes that a break above the $0.321 resistance could push XRP prices higher, marking a target as high as $0.468.
Crypto trader Pentoshi believes that a weekly close above $0.30 could set XRP’s target at $0.475, adding that the rally could lead XRP above $1.00 as well. He said:
“XRP: Absolutely destroyed it’s downtrend line with conviction. Close this week above .30 and look for .475 next… imo most important spot ever for XRP. Above that .93-.97, 1.09, and 1.23 are all possibilities.”
However, in case bearish pressure prevails, the nearest support stands at $0.295 followed by $0.290. A drop beyond this range would put a stop to the current rally over the short-term.
At the time of writing, XRP is trading at $0.294 and is up 0.2% over the past 24 hours. Analysts are now eyeing Bitcoin, and the number one cryptocurrency is likely to dictate XRP’s price action moving forward.