The XRP price is still in an incredibly bullish position despite the recent pullback and the general sentiment in the community is in line with this bullishness. One crypto analyst explains the current trend as the altcoin has entered a so-called ‘markup phase’.
XRP price leaves accumulation to the markup stage
Crypto Analyst and Trading The Signalyst used TradingView to share an interesting phase that the XRP price had entered. Using a chart, the crypto analyst outlined where the price of the altcoin was in the past, where it is now and where it is going using different terms.
The first phase outlined in the graph is the markdown phase that occurred following the price increase following Ripple’s initial victory at the US Securities and Exchange Commission (SEC) in July. During this markdown phase, the price went from $0.9 to $0.45 when all was said and done.
What came after the depreciation phase was completed was the accumulation phase. Here, the XRP price traded within a fairly tight range, giving investors the opportunity to buy as many coins as possible. During this phase, the price never rose above $0.55.
Source: TradingView.com
Next came the markup phase, which is where the XRP price is currently. In this markup phase, the price starts to recover. “After crossing above the 0.55 level mentioned in my previous idea, XRP exited the accumulation phase and entered the markup phase,” the analyst said.
This markup phase is important because it holds the power to keep the XRP price growing. However, like any rally, it faces a fair amount of resistance from bears who continue to try to pull the price down.
XRP recovers above $0.68 | Source: XRPUSD on Tradingview.com
According to the analyst, the key level at which bulls need to break in this markup phase is $0.7345, the price of which has already been rejected once on Monday. The Signalyst believes that if this level is breached, bulls can keep the price under control. The chart suggests a rise to $0.8 after a break of this resistance; an event that would strengthen XRP’s bull rally.
“Meanwhile, XRP could still face resistance rejection, which could be confirmed on shorter horizons,” the analyst warned. “In this scenario, a correction towards the support level of 0.55 would be expected.”
Despite the decline, the XRP price still shows bullishness and a high level of investor interest. Daily trading volume rose 32% in the past day, topping $3.3 billion. The price currently stands at $0.69, up 1.63% and 21% on the daily and weekly charts respectively.