(XRP) which is the third largest coin by market cap is up almost 5% at the time of writing. This growth has been a lot more exuberant in the past few days when Ripple received a big boost in anticipation of a market recovery. However, the excitement fizzled out when Bitcoin (BTC) proved to be indecisive once again. Recent price movements hint a retracement to test the previously breached downtrend line again. If Bitcoin
(BTC) holds that line as support, it will confirm a trend reversal and we can expect a recovery from them for most coins. As for now, Ripple (XRP) could continue to trade within the bounds of the falling wedge, signaling a fall to test the yellow support line.
This is not the first time Ripple (XRP) has been a victim of hindered gains thanks to indecisive Bitcoin (BTC) price movements. However, the fact remains that Bitcoin leads the show in crypto markets and almost all coins follow its lead. This is because most cryptocurrencies are paired to Bitcoin on large exchanges. So, if the price of Bitcoin goes down, the price of other coins like Ripple (XRP
) goes down.
Sometimes the price of other coins fall more as compared to Bitcoin (BTC) as the coins have to be converted to Bitcoin before they can be traded for fiat currencies or USDT (Tether). Ripple has performed well against Bitcoin recently and has escaped the falling wedge which confirms a bullish setup. However, Ripple (XRP) is still at the mercy of Bitcoin (BTC) to achieve those gains. The storm seems to be over and prices are trying to settle. Bears have certainly decreased in number and their voices have silenced for now but serious bullish movements are yet to be seen.
The recent few days have confirmed increasing interest in Ripple amidst positive news from Ripple Team. The company is constantly urging regulators to crackdown on fraudulent projects and proposes regulation for the good of the entire crypto community. Ripple is also increasingly promoting the Interledger Protocol and has tried to win over some important partners like Apple to assist with their Apple Pay service. This is nothing surprising from Ripple when you consider that they have one of the most aggressive and competent teams in the crypto community. In a span of less than a year, they have secured partnerships with industry giants like Apple, American Express, Bank of America, Santander Bank, Western Union, Moneygram, LianLian and the list goes on and on. On ground, everything looks perfect for Ripple but the charts point to a short term retracement.
The 1H chart shows a triple top pattern which indicates the price could fall and continue to consolidate for quite some time before it breaks the resistance and resumes upwards rally. However, long term Ripple seems to have a very bright future especially in light of recent developments. It is also one of those coins that have the potential to yield the best return on investment in 2018.