While Bitcoin in and of itself has done quite well over the past few weeks, altcoins have done even better. Case in point, XRP, in the past week alone, has surged 15%, while BTC has registered a relatively mild 5% gain.
While this would suggest XRP is overextended, analysts currently expect the leading altcoin to surge even higher in the coming weeks, citing positive technical factors.
XRP is Preparing to Break Even Higher
Trader Posty recently shared one of his trade ideas for XRP in terms of its USD pairing. He noted that a likely scenario he sees playing out over the next couple of weeks is for the price of the altcoin to fall to around $0.25, which is in confluence with the 200-day moving average, then rally by 24% to a “key level of resistance on high time frames” at $0.315 — a level that has resisted the cryptocurrency’s rallies on multiple occasions over the past few years.
Trade idea on the USD pairing.
Bounce on the swing high in confluence with 200MA, run to key level of resistance on HTF’s (24%).
USD pairings going well recently, set up is highly dependant on BTC. pic.twitter.com/WpuwyJF2C8
— Posty (@PostyXBT) February 8, 2020
The technical indicators and signals back further price appreciation.
He wrote in an analysis that the “market [is] so bull [right now] even XRP is starting to turn up,” drawing attention to the fact that the cryptocurrency has rallied by over 50% since the $0.17 bottom put in last December.
mrkt so bull rn even $XRP starting to turn up
– kumo breakout
– 200-day EMA breach
– will invalidate nearly 700 day bear PF soon pic.twitter.com/uZWSlHv0f0
— Josh Olszewicz (@CarpeNoctom) February 6, 2020
Olszewicz then cited three technical factors which largely imply that more gains can be had over the coming weeks and months:
- XRP has broken above the Kumo band of the Ichimoku Cloud indicator, suggesting a bullish trend.
- The 200-day exponential moving average has been passed by the price of the asset. The 200-day EMA is often seen as a key reversal point for many assets.
- XRP is looking poised to invalidate a 700-day bearish pitchfork formation in the near future, meaning that there will be much less resistance and that the multi-year downtrend will have been broken.
There’s also the positive fundamental event of Ripple partnering with International Money Express (also known as Intermex), which is a leading money remittance and financial services company listed on the NASDAQ under the ticker IMXI.
This partnership will see Intermex, which operates primarily in Latin America, use Ripple’s On-Demand Liquidity (ODL) product for “faster, transparent cross-border remittance services between the United States and Mexico.” ODL is one of the flagship products of Ripple’s RippleNet.
Photo by Joshua Earle on Unsplash