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Market commentators have identified the next XRP target to look out for as the altcoin crosses pivotal levels amid a recent test of a huge supply zone.
XRP is at the center of a remarkable market rally, showing strength in the ongoing uptrend. Its price has surged by 31% over the past week and an astounding 271% in November, making it one of the biggest gainers in the ongoing post-election rally.
XRP Retests Key Supply Zone
Most recently, Blake, a stock market analyst, discussed XRP’s immense potential. He shared a 1-week chart which highlights XRP’s current position as it tests a seven-year supply zone.
According to Blake, this supply zone ranges between $1.75 to $1.95. For context, XRP entered this territory during the latest recovery phase, which began on Nov. 27. Before this rebound, XRP witnessed a four-day collapse, dropping 13% to $1.2821 on Nov. 26.
However, with the recent recovery, XRP has recouped these lost values. It is now up 36% since Nov. 27, having recently surpassed Binance Coin (BNB) to become the fifth-largest crypto asset. Amid the uptrend, XRP surpassed the $1.75 mark, and is now testing $1.90.
Interestingly, it is now within the upper end of Blake’s supply zone, and a breakout could occur if it clears the $1.95 roadblock. This zone has acted as a major resistance area, notably during the 2018 and 2021 bull runs.
The current test of this zone is especially pivotal. Blake believes if XRP successfully closes this week above $1.95, this could open the doors to the next major target at $2.50.
However, the market analyst advises investors to be cautious. Notably, XRP’s weekly RSI has spiked to 88, suggesting an overbought condition. He noted that for long-term holders, this level may be an opportune moment to take partial profits or adjust stop-loss positions.
A Potential Breakout Beyond $2
Meanwhile, in a separate analysis, Chad Steingraber, a pro game designer, compared XRP’s current rally to its 2017 breakout. His chart shows XRP is up 271% this November, similar to the 284% rally in March 2017, which marked the start of the 2017/2018 bull run.
We break $2
All Hell breaks loose…
XRP https://t.co/Wq2lrVjgkw pic.twitter.com/5ynqKZL3pu
— Chad Steingraber (@ChadSteingraber) November 30, 2024
Interestingly, after spiking 284% in March 2017, XRP rallied by an additional 143% the next month and saw a more substantial 374% gain in May 2017. It consolidated for six months following the May 2017 upsurge, before eventually gaining 746% in December 2017 to claim the $3.3 all-time high.
The altcoin could be looking to replicate this 2017/2018 run. Steingraber emphasized the importance of the $2 level. He suggested that breaching this threshold could trigger unprecedented bullish momentum. At press time, XRP trades for $1.89, up 21% in the past 24 hours.