Bitcoin (BTC) has been taking the spotlight in recent months, just altcoins take started to finally follow the number one cryptocurrency. Several large caps have been making double digits runs in the previous days, resulting in a mini altseason.

Non only has Ether (ETH) soared above $500, but Litecoin (LTC) besides gained twoscore% in the previous week. However, XRP (XRP) is currently taking the spotlight with a daily rally of more than xx% and a new yearly high later gaining more than 50% in the past calendar week.

XRP breaking through crucial resistance at $0.xxx

XRP/USD 5-day chart. Source: TradingView

The higher timeframes show a crucial breakthrough of XRP as the resistance zone at $0.30 has been providing resistance throughout the past year.

A breakthrough like this is essential for more bullish momentum because this means a new higher high and a new yearly high take been reached.

Such a higher high increases the likelihood of a new uptrend while potentially establishing a new support level at the previous resistance zone of $0.thirty.

If that area flips for support, a new range is established for XRP, and the trend can reverse for the get-go time in 3 years.

Essential levels to sentinel for in XRP/USD pair

XRP/USDT ane-day chart. Source: TradingView

The XRP price chart shows a massive move in the previous days. Equally an investor, you should be enlightened of FOMO and perhaps avert jumping in after such a move.

This obviously includes XRP particularly after a massive FOMO candle, after which a heavy correction typically occurs.

These corrections are fascinating to watch for a buy-the-dip approach every bit information technology presents massive opportunities.

The levels to be watched are conspicuously above the current price where several resistances are found, with $0.4275 and $0.495 beingness the well-nigh critical ones.

If the price of XRP corrects, the support zone to scout for a potential support/resistance flip is plant at $0.33 and the range of $0.29-0.31.

If the latter sustain support, a neat opportunity for the next movement could be established.

Bitcoin dominance shows a possible summit

Bitcoin dominance iv-day chart. Source: TradingView

Bitcoin market cap dominance is finally showing signals of a potential top construction equally it's currently dropping. History provided interesting information surrounding this narrative. The quaternary quarter is ofttimes painful for altcoins, subsequently which a top construction is unremarkably seen for BTC.

However, if Bitcoin starts to correct, altcoins will probable fall with Bitcoin. This would push the Bitcoin potency dorsum upward in a higher place 67%.

Historical data shows such tops in Dec, which seems likely to be the example in this flow.

If that is the instance, altcoins will accept a massive first quarter or "altseason" in 2021.

Levels to lookout for in XRP/BTC

XRP/BTC 4-twenty-four hours chart. Source: TradingView

The BTC pair of XRP is showing clear signals for a potential reversal. Currently, XRP/BTC is testing the previous range of support for resistance. If it rejects here, a support/resistance flip would be bearish.

In that regard, there are a few levels and scenarios to watch for a potential continuation upward.

The beginning one is the support/resistance flip of the 0.00002250-0.00002350 sats area. This expanse is currently acting every bit resistance, merely once it flips for support, continuation to 0.00003200 sats is probable.

The second scenario is the back up/resistance flip of the 0.00001900 area. If that flips, a college low is established, and a test of the 0.00002300 sats area could occur once again.

In full general, the market place is looking more favorable by the mean solar day, which may result in massive gains for altcoins across the lath in the coming months.

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading motility involves run a risk. You should deport your ain enquiry when making a decision.