After facing a sharp sell-off yesterday, Bitcoin was once again able to find support within the upper-$7,000 region, and its recovery back above $8,000 has triggered a notable XRP rally, which is sparking hopes that the next “altseason” is inbound.
XRP’s rally today has led analysts to note that its technical strength is currently building, which could mean that significantly further gains are imminent in the near-future.
XRP Surges Over 7% as Bulls Roar
At the time of writing, XRP is trading up nearly 8% at its current price of $0.275, which is up significantly from its daily lows of $0.25 – a region of significant support that has held strong for the past several days and weeks.
It is important to note that analysts have previously explained that the $0.25 region had proven to be an incredibly strong long-term level of support that had been formed in 2018 after the crypto plummeted from its early-January highs of over $3.00, and its bullish response to its recent bout of consolidation within this region seems to confirm the fact that this is a critical support level.
Today’s upwards movement has allowed XRP to begin forming some technical strength, and Josh McGruff, a popular crypto analyst on Twitter, noted in a recent tweet that he expects XRP to incur further gains in the near-future.
“OBV downtrend has been broken, Guppy flipping to green should be on the horizon. Still inside the cloud, considered consolidation still. Breaking above the cloud, Kumo Twist, and breaking the 200MA, I’d consider this a complete trend shift from Bear to Bull. $XRP,” he noted.
OBV downtrend has been broken, Guppy flipping to green should be on the horizon.
Still inside the cloud, considered consolidation still. Breaking above the cloud, Kumo Twist, and breaking the 200MA, I'd consider this a complete trend shift from Bear to Bull.$XRP pic.twitter.com/fn4KOlt07C
— // Josh McGruff (@JoshMcGruff) October 7, 2019
Will Other Altcoins Begin Incurring Bullish Momentum?
Today’s XRP surge has come about as most major altcoins have posted slight gains and as Bitcoin’s dominance over the markets has begun to recede – dropping from monthly highs of over 70% to its current levels of 66%.
Assuming that BTC’s dominance continues to drop, it is highly probable that more capital will begin flowing into major altcoins, which could be a catalyst for the next altseason.
McGruff also spoke about this possibility in a tweet, explaining that most major altcoins are beginning to form bullish technical formations alongside Bitcoin’s dominance downturn.
“$BTC dominance is at 66% but starting to see the major alts break into their 1D clouds and breaking their downtrend OBVs. Volume is coming into them. Would be exciting to see that dominance start to drop as folks get FOMO about the altcoin markets. $XRP $ADA $EOS $TRX,” he explained while pointing to the charts of the multiple altcoins listed above.
$BTC dominance is at 66% but starting to see the major alts break into their 1D clouds and breaking their downtrend OBVs. Volume is coming into them.
Would be exciting to see that dominance start to drop as folks get FOMO about the altcoin markets.$XRP $ADA $EOS $TRX pic.twitter.com/pZzmjGzCys
— // Josh McGruff (@JoshMcGruff) October 7, 2019
Analysts will likely be closely watching to see how Bitcoin’s dominance trends in the near-term, as it could provide significant insight into whether or not altcoins will be able to extend their newfound momentum over the mid-to-long term.
Featured image from Shutterstock.
