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XRP has been struggling to surmount the resistance that has been established around the $0.20 for the past couple of days, with the crypto currently entering a bout of consolidation as Bitcoin trades sideways within the lower-$7,000 region.
This lackluster trading, however, is unlikely to last for too long, as analyst are now widely noting that they anticipate the cryptocurrency to make a big movement in the near-term.
One analyst is noting that although XRP is flashing some signs of overt weakness on its daily chart, its mid-term outlook may be bolstered by a few bullish technical formations that it is currently caught within.
XRP Consolidates Below $0.20 as Technical Outlook Grows Foggy
At the time of writing, XRP is trading down nominally at its current price of $0.198, which is around the point at which the cryptocurrency has been trading at throughout the past couple of days.
It does appear that $0.20 is a strong resistance region for the crypto, as it has faced multiple rejections at this level over the past week.
It is important to note that the token is forming a bullish ascending triangle pattern similar to that formed by Ethereum prior to its rally from $140 to $175, with this pattern potentially bolstering the crypto in the near-term.
One popular crypto analyst spoke about this technical formation in a recent tweet, noting that he is closely watching for a bullish confirmation of this pattern, which would invalidate the weakness the crypto has expressed on its daily chart.
“XRP Some weakness at daily but so far this is consolidation under resistance with bullish ascending triangle break. Eyes on a break of the box,” he said while referencing the pattern seen on the below chart.
The Crypto Could be Positioned for a “Powerful Pump”
As reported by NewsBTC yesterday, XRP has a tendency to post one powerful pump each year, which resulted in a 167% upswing in 2018 and a 50% upswing in 2019.
Per the analysis, the token’s first key high time frame resistance sits around 4,000 sats, which would mark a 50% climb from its current price region.
If this target is reached and surmounted, history shows that the crypto could see a massive rally, as its past three parabolic upswings have averaged in 555% movements.
In order for this highly bullish path forward to be confirmed, however, it is imperative that it builds a strong foundation on its lower time frames, as continued weakness could signal that further downside is imminent.
Furthermore, Bitcoin seeing some positive price action will also be imperative in order for altcoins like XRP to incur any type of immense momentum.
Featured image from Shutterstock.
