On April 6, the price of XRP surged above $1 for the first time since March 2018. This price action has put the crypto’s market valuation at about $47 billion. It seems like the major cap altcoins are now starting to follow Ethereum’s lead.
Additionally, the fourth-biggest crypto in the global market space has exploded against bitcoin which has enabled it to enjoy some considerable technical momentum.
It Is More Of A Technical Rally Than Fundamental
When Ripple’s XRP was trading around $0.75, crypto traders discovered that its market structure was bullish. One crypto derivatives trader, Cantering Clark, said that XRP has all the technical components to rally massively. Since then, XRP exploded from $0.75 to over $1.
Later on April 6, Clark tweeted:
“Not for nothing, $XRP technically has taken all necessary strides to be bullish. After the exchange delistings and write-off by most of CT, this essentially left the market short from both a positional and sidelined standpoint. This can move much higher.”
Another famous trader, called “Kaleo,” noted that XRP’s breakout against BTC is particularly optimistic. After its surge above $1, Kaleo explained that XRP is on the verge of exploding out of a 3-year downtrend against BTC. He mentioned:
“$XRP / $BTC is about to break out of a 3+ year downtrend. Zero exposure here seems irresponsible. When this sh*tcoin starts to pump, it makes vertical moves (aka all at once for a burst). Still very early.”
Social Volume Keeps Growing
Another catalyst that may be behind XRP’s movement on top of the technical momentum is the growing social volume. Based on the Santiment analysts, the social volume of XRP has been surging rapidly in tandem with many other cryptos.
The analysts said:
“Most #altcoins have been maintaining their upward trajectory to start the week, with no greater surge among top 100 assets than what we’ve seen from $STX, which is seeing a 5-month high in social volume. Other spikes include $XRP, $XTZ, $FTM, and $BTG.”
In case the technical structure of XRP remains intact and the social volume remains constantly high, the momentum of XRP might take the crypto to the next major resistance zone.
Technically speaking, the next resistance zone is located around $1.20 with a macro sell-wall at $2, going back to December 2017.