The crypto market is bouncing from daily support levels with XRP outperforming larger cryptocurrencies, such as Bitcoin and Ethereum. This token has been trending to the upside and moving against the tide even when conditions were unfavorable on small timeframes.
At the time of writing, XRP’s price trades at $0.49 with a 3% profit and 9% profit in the last 24 hours and 7 days, respectively. With the exception of Bitcoin, larger cryptocurrencies are recording sideways movement or negative performance as XRP bounces.
XRP Takes Impulse And Aims For Higher Levels
During today’s trading session, the crypto market lost momentum and was rejected by previous support. For Bitcoin, this area was located at around $19,800, while XRP retraced to around $0.48.
According to pseudonym trader, this area operating as critical support is at the top of a pattern that could be hinting at further gains for the cryptocurrency. As seen in the chart below, XRP’s price formed a descending triangle pattern.
Over the past week, the cryptocurrency managed to bounce from the lower levels of this pattern and scored a successful breakout with a re-test of support. These elements hint at an extension of the bullish momentum with a potential target at $0.50, XRP’s major resistance level.
The pseudonym trader noted the following while sharing the chart below:
$XRP Has been chilling on this trend line after breaking out of it. If the market holds up, I think this will head higher. $0.5-0.51 first area of resistance. $0.6 area should be next if it can break above $0.5-0.51. XRP/BTC Pair quite strong throughout the past few days.
This cryptocurrency’s bullish price action has been supported by positive developments in the legal battle between the U.S. Securities and Exchange Commission versus payment company Ripple. The legal dispute is related to XRP and an alleged illegal offering of the token as an unregistered security.
Filed in late 2020 by the regulator, the case might be coming to an end with a positive result for the payment company and XRP holders, or at least, that seems to be the expectation in the market. At the moment, the cryptocurrency is moving away from a range last seen when the lawsuit became public.
Crypto Market Conditions Positive For A Rally?
Additional data provided by analyst Justin Bennet indicates that the S&P 500 is also showing positive price action. This index has exercised a lot of influence over digital assets and might allow XRP to follow through and finally break the key resistance at $0.50.
In addition, Bennett showed an important reclaimed of a trendline on the daily chart as measured by the crypto market’s total market cap index. However, this reclaimed will be confirmed upon today’s close.
$TOTAL reclaimed the June trend line yesterday. Bullish reclaim as of now.
Let’s see where today closes. $BTC $ETH https://t.co/pILwWd2GZb pic.twitter.com/4sRsJqsbkn
— Justin Bennett (@JustinBennettFX) October 5, 2022