According to crypto analyst Xoom, XRP could soon showcase a significant upward movement against Bitcoin. This is linked to reaching a key resistance level on the XRP/BTC chart.
What is the Red Zone?
Analyst Xoom highlights the ‘red zone’ on the XRP/BTC chart, which represents a resistance level between 0.000012 and 0.000015 BTC. This range has historically impeded XRP's attempts to climb higher and has sparked selloffs. However, breakouts through this zone in 2017, 2021, and briefly in 2023 led to rapid rallies.
Why XRP/BTC Matters
While many traders focus on XRP's price in U.S. dollars, the XRP/BTC pair provides a clearer picture of its strength in the crypto market. A breakout here would suggest XRP is outperforming Bitcoin, potentially attracting new investment from traders rotating out of BTC into high-utility altcoins.
Impact of Macro Factors
A critical factor is the anticipation of a resolution in the prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). Expected outcomes may lift legal uncertainties that have long subdued XRP's price action. A successful breakout could spur increased trading volumes and renewed institutional interest.
Considering improving fundamentals and the cooling Bitcoin dominance, XRP may be poised for a significant breakout. A break through the red zone could represent critical new trading opportunities for investors.
