Bitcoin has just surpassed $125,800, setting a new all-time high before entering a consolidation phase. Could this market pause trigger a capital rotation towards major altcoins like XRP? Investors are closely watching key price levels that could propel XRP to new historical highs, amidst conflicting signals from technical indicators.
The euphoria that propelled Bitcoin to $125,800 is now giving way to a technical consolidation anticipated by numerous analysts. The daily RSI has entered the overbought zone above 70, while the MACD histogram shows a progressive weakening of bullish bars, indicating a decrease in buying pressure after several weeks of intense accumulation. Despite this temporary slowdown, the structurally intact bullish trend and weekly chart remain positive, confirming that bulls maintain control over the underlying momentum. Is XRP following the same trajectory?
This pause phase creates a particularly favorable environment for first-generation altcoins. Historically, when Bitcoin consolidates after establishing new records, experienced investors reallocate a portion of their gains to alternative assets offering superior yield potential in the short term. This sector rotation benefits traders looking to diversify their positions and capitalize on faster movements in the cryptocurrency market.
XRP, with its massive capitalization and deep liquidity, naturally positions itself as one of the main beneficiaries of this dynamic. Attentive investors can exploit this configuration to identify strategic entry points, particularly in the current range between $2.70 and $3.15, offering opportunities for significant gains in a market still influenced by Bitcoin’s performance and the rotation toward promising altcoins.
XRP is currently navigating a technically fascinating price zone, oscillating between a solid floor located between $2.70 and $2.80, and a resistant ceiling around $3.10-$3.15. This range represents much more than a simple consolidation zone. It constitutes the battlefield where the medium-term orientation of the asset is being determined. A confirmed daily close above $3.15 would likely trigger a bullish acceleration toward the $3.30-$3.35 zone, a major psychological level that could serve as a springboard toward $3.55.
Careful observation of price action also reveals the progressive formation of a W pattern, a chart figure renowned for its reliability as a bullish reversal configuration. This graphic structure, when fully materialized with a confirmed breakout, generally offers a theoretical target measurable by projecting the height of the W. In the present case, a clear validation above $3.15 would activate a technical objective consistent with recent daily highs, precisely around $3.55.
On the weekly time scale, the analysis becomes even more promising for bulls. The bearish divergence that formed during the summer shows that if Bitcoin continues its pullback, XRP could be one of the next assets to move as traders turn to altcoins. A firm breakout above $3.15 could propel the price toward $3.50-$3.60, close to its ATH.
However, if the price drops below $2.93-$2.94, XRP could return to sideways action before attempting a bullish progression again.
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