XRP price now eyeing $1.00 after key support level holds, BTC price soars

Tuesday 01 December 2020, 2:08 AM AEST - 1 month ago

While Bitcoin (BTC) is facing a potential new all-time high, other coins are showing strength as well. One of those coins is XRP, which has been going vertical in the previous weeks.

XRPs price surged from $0.22 to a high of $0.78 during the month of November, which immediately ended up in a massive correction towards $0.45.

Let's take a look at the XRP price charts to determine whether this was an entry opportunity before the next leg up.

The crucial zone around $0.45 holds as support 09cb80ff-248c-40e1-966e-e2f479a2cb2e.pngXRP/USDT 1-day chart. Source: TradingView

The daily chart of XRP is showing clear support and resistance zones. Within such a heavy pump, the levels to watch can be derived from the daily timeframe.

In this case, the first massive support zone is around the $0.45 barrier. XRP corrected toward this zone as the price of Bitcoin dropped to $16,200 on Thanksgiving day.

The chart shows a clear support bounce as the price gained by more than 40% since.

If $0.45 failed to sustain support, the next support zone was around the $0.30 area, which is the previous resistance zone that was likely to be flipping support.

What are the new resistances if XRP rally continues?

The next resistance zone now to break is the $0.69 area, which is crucial before $1.00 can come into play.

d4a11bdc-d377-4bff-8200-925379fc4f1e.pngXRP/USD 1-day chart. Source: TradingView

There are a few useful tools to determine the potential resistance zones on the XRP chart. One of them is the Fibonacci extension tool.

The recent top is the "1" number on the Fibonacci extension tool and the bottom around $0.20 as the "0".

Therefore, the next likely resistance zone can be measured around the 1.618 Fibonacci level at $1.13. Similarly, the second zone is the zone around $1.70, which is the 2.618 Fibonacci level. ...

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