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XRP Posts Nonsense Rally amid Renewed Altcoin Season

XRP Posts Nonsense Rally amid Renewed Altcoin Season
XRP Posts Nonsense Rally amid Renewed Altcoin Season

Yerevan (CoinChapter.com) — Even a dead serious lawsuit over the status of XRP cannot keep away bulls from speculating on it.

The Ripple blockchain’s native token posted an incredible price rally this year, surging more than 330 percent to hit $0.948, its highest level since April 2018. Despite a flurry of controversies surrounding Ripple Labs, its wild move surfaced a San Francisco-based cross-border payment startup that proposes to use XRP as a settlement token between two parties.

A noble firm for many of its partners in mainstream finance, Ripple Labs still comes as a controversial figure in the sector. The company currently stands in the middle of a high-profile class-action lawsuit filed by the US Securities and Exchange Commission for allegedly selling “illegal securities” in the form of its pre-mined XRP tokens.

The lawsuit, filed in December 2020, catalyzed many cryptocurrency exchanges in the United States to remove XRP from their offerings. That included Coinbase, a crypto trading firm that will go public via a direct listing on Nasdaq on April 14. That explains that no regulated cryptocurrency firm wants to deal with Ripple Labs until they win or settle their legal complications with the US securities watchdog.

And yet, XRP posted a supersonic bullish rally in 2021 — and this month.

Technicals over Fundamentals

The XRP/USD exchange rate climbed up to 66.32 percent in April 2021, driven in part by an ongoing “altcoin season.” In simple terms, a slowdown in Bitcoin’s bullish moves prompted traders to seek profits and transfer the proceedings to its rivaling cryptocurrencies. As a result, Ethereum — the second-largest cryptocurrency, surged more than 8 percent, and its closest rival, Binance Coin, or BNB, rallied 13.43 percent.

XRP remained the best monthly performer among the top ten cryptocurrencies by market capitalization. But why it rallied remains a mystery — except if one goes ballistically technical on its dollar- and bitcoin-based charts.

XRP/USD Daily Chart

Away from negative fundamentals, XRP was hinting to break bullish as it consolidated sideways during an uptrend.

Ripple is breaking out of its symmetrical triangle pattern. Source: XRPUSD on TradingView.com
Ripple is breaking out of its symmetrical triangle pattern. Source: XRPUSD on TradingView.com

The token broke out of the structure this week, expressing its intention to rise by as much as the maximum Triangle height. That is nearly $0.43, which puts XRP en route to hitting $0.99 (or $1) in the coming sessions.

XRP/BTC Daily Chart

XRP showed a similar strength against bitcoin as it broke above a medium-term resistance level following its upside move this week.

XRP shows signs of breaking out of its sideways range. Source: XRPBTC on TradingView.com
XRP shows signs of breaking out of its sideways range. Source: XRPBTC on TradingView.com

Traders now test the resistance trendline in conjugation with XRP/BTC’s 200-day moving average. A pullback would risk crashing the pair lower towards the blue wave below (the 50-day moving average).

Photo by Denny Luan on Unsplash

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Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

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