XRP, the native token of Ripple continued to trade sideways Tuesday as bullish traders paused to book profits accrued in the first half of January.
Despite a brutal winter in 2022, the year kicked off well for XRP, with the cryptocurrency rallying from a low of $0.3054 on Jan 1 to $0.4095 (+34%) on Jan 14. Since the price dropped to a year-low of $0.30 last June, it has remained trapped inside a ranging market, with various attempts at recovering being eclipsed by various macroeconomic and industry-related problems.
Notably while still inside the range, XRP managed to surge by over 78% in September before encountering a ceiling along the $0.55 range. Its drop since then has been painful, with the FTX debacle in November worsening things.
However, following its epic recovery in the past two weeks, XRP has shown signs of surging further, suggesting it is time for buyers to start looking for entry points.
Technically, the one-day timeframe chart of XRP to USDT shows that the price is just below a downtrend line, which it is trying to break. There is also a monthly overhead resistance at $0.42 then a strong resistance zone from $0.50 to $0.55. There is a likelihood that price will slice those these levels respectively in the coming days if all matters remain constant to reach the next major resistance present at $1.
However, if the price fails to follow that formation, traders can expect a correction to the first support inside the $0.36-$0.37 range before a major uplift to $0.55 leading to $1.
Onchain metrics also point to XRP furthering its ascent. On-chain analytics firm Santiment has recently highlighted a spike in XRP’s social dominance and likewise, a spike in address activity meaning investors are suddenly interested in the cryptocurrency. XRP Whales with a balance of 100k-10m coins have also increased their holding by over 6% in the past week with the combined holdings of enormous whales reaching an all-time high.
The six most prominent crypto by market capitalization was recently trading at $0.3872, up 0.41% in the past 24 hours according to Coinmarketcap data.