Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

XRP price struggles with the $0.400 hurdle as it attempts to flip it into a support level.
If China lifts its zero-Covid restrictions, it could trigger a rally in risk-on assets.
The remittance token could embark on a 30% rally to collect the buy-stop liquidity resting above $0.510.

XRP price shows that it is taking its sweet time to overcome and sustain above a crucial resistance level. If successful, it could catalyze a quick run-up. However, the lack of volatility in crypto markets has made it impossible for the remittance token to do this by itself.

A change in China’s Covid policy breathes hope

The much-needed volatility might come in the next two hours. A news conference is likely to be held at 0700 GMT in Beijing by the Joint Prevention and Control Mechanism of the State Council in China. There are speculations that China might announce lifting its zero-Covid policy. This development could ease the tensions among investors who moved to safe-haven assets after protests broke out in China.

If there is an announcement that confirms the lifting of the zero-Covid policies, it could provide a bullish push for risk-on markets, including cryptocurrencies.

XRP price ready to make a move

XRP price sliced through the $0.400 hurdle on November 22 but failed to sustain above it. As a result, the altcoin slipped below the aforementioned level. Bullish rumors from China could bring much-needed volatility with it, triggering a successful breakout.

In such a case, XRP price will aim to collect the buy-stop liquidity resting above the $0.510 equal high. This move would constitute a 30% upswing and is likely where the upside is capped for the remittance token.

XRP/USDT 1-day chart

On the other hand, if XRP price fails to hold above the $0.379 support level, it will invalidate the bullish thesis. This development could see the remittance token slide to the $0.316 foothold, where buyers can band together and scoop XRP at a discounted price.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.