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XRP has hit a new multi-year high after surpassing the $3 mark amid the market recovery. The ongoing rally has fueled investors’ and analysts’ bullish sentiment, suggesting that the race to a new all-time high (ATH) has started.
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XRP Hits $3 After Seven Years
XRP has been one of the best-performing cryptocurrencies after the post-election pump, rallying over 450% since November 6. In the past two months, the altcoin has outperformed most of the market, holding above key support zones during the market’s corrections.
In December, the cryptocurrency climbed to its multi-year high of $2.9, hovering between the $1.9-$2.7 price range for the rest of the month. Despite the broader market retraces, the altcoin held the range’s lower zone, confirming it as a key support level.
Moreover, XRP has traded between the $2.1 and $2.6 levels for the past two weeks, holding above the $2.2 support amid the start-of-year pullbacks. Over the last few days, the cryptocurrency has been attempting a breakout, as some analysts noted.
Analyst Carl Runefelt noted that XRP had been retesting the descending resistance of a one-month symmetrical triangle pattern, which targeted a surge to the December highs.
On Wednesday, XRP’s price skyrocketed 30% from Monday’s lows to break above the key resistance level and reach a new multi-year high. As Bitcoin reclaimed the $98,00-$99,000 price range, the cryptocurrency soared 17% in the daily timeframe to briefly surpass the $3 barrier for the first time since 2018, trading just 12% below its ATH of $3.4.
After the long-awaited milestone, XRP retraced to $2.9 again and is currently testing the resistance level as support.
XRP’s Rally To New ATH ‘Just Started’
Analyst Ali Martinez shared that whales have noted XRP’s momentum as the number of large-scale transactions on the XRP network surged. According to the post, the network saw 341 transactions over $1 million in the last 24 hours.
Crypto analysis firm Santiment also revealed that wallets holding 1 million to 10 million XRP have continued to accumulate the altcoin. The firm stated that these wallets have added around $3.8 billion in XRP since November 12, marking an increase of 37%.
Meanwhile, Crypto trader Miky Bull pointed out that the altcoin has broken out of a multi-year downtrend line against its BTC trading pair. According to the post, the cryptocurrency broke above the trendline during its November breakout and has held above it for the past two months.
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Additionally, the trader highlights that, historically, whenever XRP broke out from its downtrend line against BTC, it would kickstart a massive rally to new highs. He suggested that if it were to repeat this behavior, XRP/BTC could be near 0.0004, which would see XRP’s price in double digits.
Based on this, Miky added that the altcoin’s next target should be $4, which would represent a 37% increase from current prices. As of this writing, the altcoin is trading at $2.91, an 11% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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