Chart of the week: XRP could jump another 12%, what to expect

XRP Price Surge: Altcoin Gains Momentum

On November 29th, XRP, the native token of the XRPLedger, experienced a 12% rise, surpassing $1.7300. This bullish trend mirrored the price increases of leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

On-chain Indicators Signal Price Growth

Between November 16th and 29th, XRP traders increased their on-chain activity, indicated by spikes in active addresses and transaction volume. The network realized profit/loss metric shows that XRP traders have been profiting since November 4th, further supporting a bullish outlook.

Retest of April 2021 Peak

Technical indicators suggest the possibility of an extended price rally, aiming to retest the $1.9669 peak reached in April 2021. A breakout above this resistance point could erase losses incurred in the past three years.

Derivatives Traders Turn Bullish

Data from Coinglass reveals bullish sentiment among XRP derivatives traders on Binance and OKX. The long/short ratio exceeding 1 on major exchanges signals a potential rally in the spot market.

Strategic Considerations

XRP's correlation with Bitcoin is 0.82, indicating that significant market movements in BTC can influence its price. If BTC experiences a substantial price decline, it could negatively impact XRP. Regulatory clarity from the SEC's lawsuit against Ripple and progress in crypto regulation in the United States are also crucial factors to consider.

Disclaimer: This article does not constitute investment advice. The content provided is for educational purposes only.