As Bitcoin (BTC) has been in the spotlight in contempo months, the altcoin XRP (XRP) has been doing reasonably well in its own correct. Bitcoin's rally has been associated with institutions and Wall Street jumping on this new nugget class and digital store of value. Meanwhile, XRP has broken out of a multi-year downtrend to regain momentum equally well.

However, XRP price has not been able to break the $1 barrier yet despite the Flare Network airdrop now but around the corner scheduled for Dec. 12.

Is this recent motion a classic example of "buy the rumor, sell the news" or should more upside be expected? Let's have a wait at the charts.

XRP makes the kickoff higher loftier since January 2018

XRP/USDT ane-day chart. Source: TradingView

XRP/USD has been showing some impressive numbers in recent weeks as the token rallied from $0.22 to a peak high of $0.80. This is classic XRP toll action as the rallies are vertical and volatile instead of organic and gradual. The recent move is not an exception with the price soaring in a matter of days.

However, the recent move broke through a multi-year downtrend, every bit the chart shows. This downtrend was broken, establishing a new higher high. In fact, this is the first higher high since the bear market place started in Jan 2018.

Additionally, a smaller rally occurred in August, which lifted the toll of XRP from $0.xvi to $0.33. Later that motility, the price of XRP corrected to its previous resistance area at $0.22. This correction marked a bullish support/resistance flip, after which the massive move towards $0.fourscore occurred, striking as loftier as $0.ninety on Coinbase concluding mo.

A correction seems imminent after such as move

XRP/USD ane-day chart. Source: TradingView

The price action of XRP often gives a indicate prior to such vertical price movements, later on which a more extended correction begins. The chart to a higher place shows four previous movements of XRP, which are similar to the last one.

Such big vertical moves typically occur after a lengthy correction that tin span weeks to months that sets the phase for the next impulse movement.

This is non a bad outcome as impulse moves often need such corrections before more upside. Frequently, these impulsive moves right towards the previous resistance area to set up a bullish support/resistance flip.

Levels to proceed an eye on with XRP

XRP/USDT i-day chart. Source: TradingView

The daily timeframe indicates some beautiful levels to sentinel for XRP traders or investors. These levels are based on historical price activeness equally both of the crucial zones happen to be previous resistance areas.

The first one is around $0.45, which was already tested during the last weeks. The moment Bitcoin corrected to $16,200, XRP/USD dropped severely toward $0.45, which resulted in a back up/resistance flip.

This confirms the massive correlation betwixt cryptocurrencies currently. Altcoins tin regain bullish momentum as long as Bitcoin remains stable. Even so, once Bitcoin starts to right, altcoins will suffer and frequently see heavier losses than Bitcoin.

Thus, if Bitcoin starts to make a more astringent correction in the coming period, the second crucial area to watch for investors is the $0.32 area. This level served as the resistance zone for over a year, through which a support/resistance flip would exist extremely bullish here.

Both of these zones happen to be a very bullish case for XRP, though admittedly very painful for investors who bought to a higher place $0.seventy. Hence, if the XRP price consolidates in a higher place $0.45 or $0.32, it will found some other college low for the markets.

XRP/USDT iii-24-hour interval chart. Source: TradingView

This chart gives a unproblematic overview of the market'due south construction, showing that the contempo pump made the starting time higher loftier after a multi-yr bear market since early 2018.

After a higher high, a college low needs to be established to keep the uptrend. If either of the two zones becomes a new support zone, the price of XRP will so be ready to gear up a new higher high in the side by side impulse move. This higher loftier will and so open the door for the cost of XRP to reach $ane.00 and possibly even $1.50 in the coming months.

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading movement involves hazard. You lot should conduct your ain inquiry when making a decision.