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Bitcoin and XRP have both made significant efforts to reclaim resistance thresholds in recent days. Bitcoin has surpassed the $120,000 price mark. In contrast, XRP hasn’t encountered the same ease in securing a solid breakout, although it has surged as high as $3.10 in the last 24 hours.
Technical examination suggests potential short-term price increases if resistance levels are maintained, but it also presents a scenario where both Bitcoin and XRP could experience another wave of downturns in the upcoming week.
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XRP’s Challenge Against The Downtrend
An analysis of XRP’s daily candlestick timeframe chart, which was shared on the social platform X by a crypto analyst named Guy on the Earth, reveals that XRP’s price activity in the last 48 hours is breaching a downtrend resistance, with the upper end of its consolidation rectangle at $3.12 now in view.
The analyst pointed out that the cryptocurrency narrowly evaded this target during its recent surge, stalling at $3.10 before retracting to $3. Nevertheless, XRP has managed to retest and discover support on the downtrend line, indicating there is still potential for further upward movement.
However, the analyst warned that the rally could diminish swiftly unless XRP can conclude the week and stabilize above $3.12. A drop back below $3.00 would negate the breakout effort and reopen the chance of a decline toward the $2.72 support. The pink circle illustrated on the chart below depicts the risk of XRP falling back to retest the ascending trendline in the range of $2.40 to $2.50 if $2.72 is breached.
XRP Daily Price Chart: @guyontheearth
On the other hand, Bitcoin has been exhibiting greater momentum. The breakout above $120,000 has been definitive, and this can be interpreted as a more robust technical structure when compared to XRP. The Bitcoin dominance (BTC.D) is also trending upward, suggesting Bitcoin may continue to guide the market regardless of whether the next shift is upward or downward.
A Significant Weekend Ahead For Both Bitcoin And XRP
The next few days will be crucial for both XRP and Bitcoin. The three-day candle will close within hours, and the weekly candle will soon confirm the overall trend. For XRP, maintaining a position above the $3.00 downtrend retest is vital to sustain bullish momentum. Conversely, Bitcoin sustaining strength above $120,000 could validate its breakout and lay the groundwork for further rallies.
Failing to hold above $120,000 would likely usher in another tumultuous phase next week, with XRP at risk of retreating toward $2.72 or possibly lower. The week’s conclusion will determine whether this rally can sustain itself or whether the correction scenario comes into play instead.
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At the time of writing, XRP is trading at $3.03. Bitcoin is trading at $122,500.
Featured image from Unsplash, chart from TradingView
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