Ripple (XRP) has successfully penetrated the descending trendline that has been in place for seven years against ETH and this change has impacted the market.
This trendline has persisted since 2018 when Ethereum continually outperformed XRP under different market conditions and technological enhancements.
Statistics derived from the XRPETH pair illustrate a downturn of XRP prices since their peak at 0.00356 ETH in January 2018 which corresponds to the ATH of $3.31.
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However, after experiencing some fluctuations, XRP has now managed to break through this descending trend line.
Having bottomed at $0.93 in July, XRP crossed the trendline support and made a significant move this month by retesting $1.
The breakout happened after a slight correction from the recent high of $1.265 on November 16 when XRP was trading at 0.000401 ETH, the highest it has been in sixteen months.
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November Rally: Ripple (XRP) Outperforms Ethereum by 71%
In the current November market rally, the Ripple coin has outperformed Ethereum with a 112% rise compared to the 29% rise of Ethereum.
This outstanding performance is evident from the XRPETH chart as XRP appreciated by 71% against Ethereum in the same month.
These figures show that there is increasing momentum in the market for XRP, with an important change in the trading dynamics in the asset’s favor.
This new dominance can be attributed to several factors such as; enhanced investors’ confidence and increased usage.
XRP price has now stabilized above $1 or 0.0003616 ETH at press time. This could be an indication of a large trend reversal as XRP maintains its price above previous resistance level.
Testing Key Levels and Future Targets
As Ripple (XRP0 continues to strengthen against Ethereum, attention turns to possible future targets. The current trading levels present a strong support at the prior descending trendline which is now acting as a support level.
This could be the trigger to send the price even higher. If the upward trend persists, XRP may seek to challenge the January 2018 high of 0.00356 ETH.
Furthermore, the ability of the cryptocurrency to trade above critical resistance levels will be significant in deciding if the current rally will sustain the long-term trend.
Meanwhile, technical indicators on the MACD analysis remain bullish as the MACD line remains above the signal line and positive histograms are increasing.
This means that there is a lot of buying interest. This may however start to change as the histogram flattens out at the bottom indicating that consolidation may be forthcoming.
Furthermore, the Bull Bear Power (BBP) indicator stands at 0.415 indicating overbought territory, bullish sentiment may thus be followed by a correction.
At press time, the price of XRP was $1.12, showing a 58% rally in the last 7 days. Concurrently, the market capitalization is $63.82 billion, which shows positive investors’ sentiment with the 24-hour trading volume surging 3.8% to $6.5B.
