Market Analysis

XRP Breaks Out as Altcoins Start to Run - Price Analysis

from Crypto Globe 4 years ago 0 0 710

Short term: bullish, but expect a pullback in very short term

Long term: trend looks to be turning up

XRP (XRP) is one of several major altcoins that seems to be reversing its trend upward, after a long period of correction, and as Bitcoin (BTC) dominance falls. Important resistances have been broken, suggesting a longevity to the new trend.

We start on the daily XRP/BTC chart, where we can see exactly what has been achieved. XRP has broken both a horizontal and diagonal resistance, converging at about the same spot. Volume has already outpaced the previous day’s, despite being only about halfway done with the trading day. This looks like a breakout with some considerable power behind it.

Breakout XRP chart by TradingView

However, we should expect a pullback in the short term, as XRP is now quite overbought on the daily (not pictured). We can anticipate a retest of the breakout area at around 3300 satoshis -- although there is no guarantee that price will not just continue up from here.

Moving to the daily XRP/USD pairing, we see a slightly less bullish picture -- but mostly because the USD chart was wrecked during Bitcoin’s breakdown about three weeks ago. Here, XRP is regaining the 55 EMA and steaming for important resistance at about $0.28. Again, volume here has already outpaced the previous day’s, with almost a half a day left of trading.

getting there XRP chart by TradingView

Looking at the weekly XRP/BTC with MACD/histogram, we see the histogram pointing up at a flat trajectory -- pretty bullish but not mega-bullish. The MACD crossed bullish a couple of weeks ago, and is still uptrending nicely. It has quite a long way to go to get back to the center of the range, however; this means that we aren’t likely to see any kind of rocket ship straight up aside from short spurts.

Start of an uptrend, probably XRP chart by TradingView

Volume during the past week (Bittrex) did dip a little, but this volume was almost entirely buy volume.

With Bitcoin dominance collapsing at what many considered a far too high market share, major altcoins like XRP have a lot of runway to claw back their painful losses from 2019 -- losses, at least, against Bitcoin. But even if they can outperforming a falling Bitcoin, it will be a harder fight to outperform USD and other fiats.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.