Charts of the Week: XRP and TRON Poised to Extend Rally
The cryptocurrency market experienced a significant correction on Friday, with Bitcoin (BTC) falling under the $100,000 level and dragging altcoins down with it. However, despite this setback, XRP and TRON (TRX) are showing promising signs of extending their rally, fueled by the ongoing altcoin season and a series of technical indicators.
Altcoin Season Persists
The altcoin season index at Blockchain Center signals that it is indeed “altcoin month,” with 75% of the top 50 altcoins continuing to outperform Bitcoin over a 90-day time period. This indicator reads 86 on a scale of 0 to 100, indicating a strong trend in favor of altcoins. XRP and TRON have been at the forefront of this trend, posting over 50% weekly gains and demonstrating significant momentum.
On-Chain and Technical Analysis
On-chain and technical analysis of XRP and TRON reveals a series of bullish signals. The total open interest in both altcoins spiked earlier this week, followed by above-average open interest as of Friday, December 6, per Santiment data. Additionally, the volume in both altcoins is above average, with positive spikes in early December, indicating demand and relevance among traders on crypto exchange platforms. The funding rate for both altcoins has been positive since November 12, indicative of bullish market sentiment among XRP and TRON traders on derivatives exchanges.
XRP Price Forecast
XRP trades at $2.3028 early on Friday, with technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) supporting gains in XRP price. XRP faces resistance at $2.5102, but the target is the December 2024 peak of $2.9092. A correction could send XRP to collect liquidity in the imbalance zone between $1.9575 and $2.2011. Once the inefficiency is filled, XRP could attempt to regain lost ground and target a 26% price rally to the target.
TRON Price Forecast
TRON trades close to support at $0.3160 on Friday, with the closest support being $0.3055, the 50% Fibonacci retracement of the rally from the November 9 low to the December 4 peak of $0.4500. TRON could rally 22.42% and target the 78.6% Fib retracement at $0.3881. The momentum indicator, MACD, supports a thesis of gains in TRON as it flashes green histogram bars above the neutral line.
Strategic Considerations
Bitcoin’s price trend is key, and traders need to watch BTC closely for an impulsive correction. A steep decline could usher a pullback in altcoins, so sidelined buyers and traders adding to their long position need to watch BTC price. XRP and TRON both have observed a decline in their open interest across derivatives exchanges in the past 24 hours, per Coinglass data. This is likely a reaction to Bitcoin’s decline under the $100,000 level.
Conclusion
In conclusion, despite the recent correction, XRP and TRON are poised to extend their rally, fueled by the ongoing altcoin season and a series of technical indicators. Traders and investors should closely monitor the price trend of Bitcoin, as a steep decline could impact the rally of altcoins. However, with their technical indicators supporting gains and a series of bullish signals, XRP and TRON are well-positioned to continue their upward momentum.
Actionable Prediction
Based on the analysis, I predict that XRP will rally 26% to the target of $2.9092, and TRON will rally 22.42% to the target of $0.3881. These predictions are supported by the ongoing altcoin season, technical indicators, and on-chain analysis. However, traders and investors should closely monitor the price trend of Bitcoin and adjust their strategies accordingly.
