Bitcoin (BTC) has been taking the spotlight in recent months, but altcoins have started to finally follow the number one cryptocurrency. Several large caps have been making double digits runs in the previous days, resulting in a mini altseason.
Not only has Ether (ETH) soared above $500, but Litecoin (LTC) also gained 40% in the previous week. However, XRP (XRP) is currently taking the spotlight with a daily rally of more than 20% and a new yearly high after gaining more than 50% in the past week.
XRP breaking through crucial resistance at $0.30
The higher timeframes show a crucial breakthrough of XRP as the resistance zone at $0.30 has been providing resistance throughout the past year.
A breakthrough like this is essential for more bullish momentum because this means a new higher high and a new yearly high have been reached.
Such a higher high increases the likelihood of a new uptrend while potentially establishing a new support level at the previous resistance zone of $0.30.
If that area flips for support, a new range is established for XRP, and the trend can reverse for the first time in three years.
Essential levels to watch for in XRP/USD pair
The XRP price chart shows a massive move in the previous days. As an investor, you should be aware of FOMO and perhaps avoid jumping in after such a move.
This obviously includes XRP particularly after a massive FOMO candle, after which a heavy correction typically occurs.
These corrections are fascinating to watch for a buy-the-dip approach as it presents massive opportunities.
The levels to be watched are clearly above the current price where several resistances are found, with $0.4275 and $0.495 being the most critical ones.
If the price of XRP corrects, the support zone to watch for a potential support/resistance flip is found at $0.33 and the range of $0.29-0.31.
If the latter sustain support, a great opportunity for the next move could be established.
Bitcoin dominance shows a possible top
Bitcoin market cap dominance is finally showing signals of a potential top construction as it’s currently dropping. History provided interesting data surrounding this narrative. The fourth quarter is often painful for altcoins, after which a top construction is usually seen for BTC.
However, if Bitcoin starts to correct, altcoins will likely fall with Bitcoin. This would push the Bitcoin dominance back up above 67%.
Historical data shows such tops in December, which seems likely to be the case in this period.
If that is the case, altcoins will have a massive first quarter or “altseason” in 2021.
Levels to watch for in XRP/BTC
The BTC pair of XRP is showing clear signals for a potential reversal. Currently, XRP/BTC is testing the previous range of support for resistance. If it rejects here, a support/resistance flip would be bearish.
In that regard, there are a few levels and scenarios to watch for a potential continuation upward.
The first one is the support/resistance flip of the 0.00002250-0.00002350 sats area. This area is currently acting as resistance, but once it flips for support, continuation to 0.00003200 sats is likely.
The second scenario is the support/resistance flip of the 0.00001900 area. If that flips, a higher low is established, and a test of the 0.00002300 sats area could occur again.
In general, the market is looking more favorable by the day, which may result in massive gains for altcoins across the board in the coming months.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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