XRP has surprisingly been one of the best performing altcoins throughout the past few days, far surpassing the gains seen by Ethereum over the past month and even outperforming Bitcoin’s gains seen over the past week or two.
This comes following a prolonged bout of sideways trading that persisted for over a multi-year period.
The break above the $ 0.30 level – which has long been a strong resistance level – seems to be what sparked this movement, and the parabolic uptrend seen in the time since confirms the significance of this recent breakout.
One trader is now noting that the cryptocurrency is flashing some signs of forming a potential “blow-off top.”
This is a technical pattern seen when a cryptocurrency goes on a parabolic, FOMO-induced rally that ends in aggressive profit-taking.
So far, it has yet to see any sharp retrace. This means that bulls may still have some juice left to push it higher, potentially aiming at the $ 1.00 level next.
If the blow-off top the one analyst expects does come to fruition, it may decline towards $ 0.40 next.
XRP Explodes Higher as Shocking Uptrend Continues
At the time of writing, XRP is trading up over 10% at its current price of $ 0.68. This marks a massive rise from its weekly lows of $ 0.23 set just a few days ago.
This parabolic advance first came about after the cryptocurrency rallied past its $ 0.30 resistance level earlier this week.
It did reject at $ 0.80 overnight, suggesting that this is a key resistance level that may continue suppressing its price action in the days and weeks ahead.
A break above here would open the gates for a move to $ 1.00 in the near-term, which will likely prove to be an intense resistance level.
Analyst: Here’s Why a “Blow-Off Top” Could be Imminent
One trader explained in a recent tweet that XRP could be forming a “blow-off top,” which is a sign that downside could be imminent.
The chart he offers shows a downside target that sits at roughly $ 0.44, which would mark a notable decline from its current price level.
“XRP Giving blow off top vibes. I hate money so I’m going to try and short this,” he said while pointing to the below chart.
Image Courtesy of Altcoin Psycho. Source: XRPUSD on TradingView.
The coming few days should provide some insights into the long-term significance of this recent movement. Any sharp rejection or selloff could confirm XRP’s recent highs as a top.
Featured image from Unsplash. Charts from TradingView.