The price of XRP has surged with 16% in the past 24 hours with commentators believing that the gains come as a result of a response to reports a looming fork of the token.
The crypto market has lately been quite volatile with Bitcoin displaying strength in its increased dominance. However, that dominance seems to have faced some challenges from several other altcoins that surged on sharply on September 18. With Ripple’s XRP leading the way, it seems like the altseason is coming soon.
The sudden surge in XRP could have come as a response to reports a looming fork of the token. These reports arising from a civil war that has been happening among the XRP community may amount to nothing. In that context, XRP investor CryptoBitlord wrote in August:
“I’m thinking about forking XRP so we don’t have to deal with the founders dumping. This will be a community effort.”
There has been increasing ‘noise’ in the XRP community recently after Ripple sold XRP to fund various investments. In July, Ripple announced a quarter-to-quarter increase of XRP sales of almost 48%. Ripple now reportedly owns almost 60 billion of the available 100 billion XRP tokens.
Moreover, a change.org petition calling on Ripple to stop “dumping” XRP has acquired more than 3,600 signatures since it was created in August. These reports and many other factors could be the reason for the abrupt surge in the XRP price
XRP Price Analysis
On September 17, a major breakout pattern formed with the resistance near $0.2630 on the hourly chart. XRP/USD gained bullish momentum and quickly broke the $0.2620 and $0.2650 resistance levels. That opened the door for sharp gains past the $0.2720 and $0.2800 resistance levels.
Additionally, the token rallied above the $0.3000 resistance area gaining more than 15% in the process. Simultaneously, there was a break above the bullish continuation pattern with resistance forming around the $0.2930 level on the same chart. A new monthly high was achieved around $0.3128 with the token currently consolidating gains.
The nearest support is forming near the $0.3060 level coinciding with the 23.6% Fib retracement level of the recent rally between the $0.2839 low and $0.3128 high. On the downside, many supports exist near the $0.3060 and $0.3000 levels.
Also, the 50% Fib retracement level of the same recent rally stands near $0.2985 to act as a solid support. The next major support is around $0.2950 and any strong move below it could expose a retest of the $0.2800 support area.
Looking on the upside, the nearest resistance has formed near the $0.3120 level. If more upward movement comes, the next resistant zones have formed around the $0.3200 and $0.3220 resistance levels after breaking the $0.3150 resistance. The major resistance that has developed for the current bullish wave is now around the $0.3250 level.
Observing the chart closely, it is notable that the XRP price is trading in a strong uptrend above the $0.2950 and $0.3000 support levels. In the near term, a downside correction is highly probable. However, the price remains well bid over the $0.3000 and $0.2950 levels in the coming sessions.
The hourly MACD currently shows many positive signs in the bullish zone while the hourly RSI is correcting towards the 70 level. However, the uptrend now seems stronger with XRP expected to continue with the gains in the future.