Ripple (XRP) once the favorite stallion has recently been more of a dark horse as investors lose interest amidst legal troubles and concerns over XRP’s use cases. The above chart for XRP/USD shows that the price has suffered the most compared to most cryptocurrencies and appears to have reached rock bottom. RSI level for XRP/USD, is now once again at where it was before the beginning of the previous cycle. The price has also respected its long term ascending channel and is currently trading close to the lower limit of that channel.
Ripple (XRP) is known for its wild moves that yield most of the gains for the entire year in a matter of just a few weeks. The rest of the year comprises mostly of corrections as the price finds a bottom and stabilizes before its next big move. Currently, XRP/USD looks strong for a bullish wave that could take it all the way to a new ATH. However, overall market conditions still indicate that further downside is likely for Bitcoin (BTC). As we have seen in the past, whenever Bitcoin (BTC) falls, coins like Ripple (XRP) fall a lot more aggressively. It is not clear yet if Ripple (XRP) will be able to respect its support line in case Bitcoin (BTC) falls further, but it is clear that that if it does, the fall will be a lot more aggressive and breaking market structure may result in massive panic selling.
Current technical conditions for XRP/USD do not favor a strong pullback at this point. The most likely scenario would be that the price will continue to trade sideways while Bitcoin (BTC) finds a bottom. Meanwhile, Ripple (XRP) may receive some favorable announcements to keep the price above its support line. One of those announcements could be something along the lines of Ripple (XRP) being termed a “commodity” instead of a “security”.
Ripple (XRP) may appear to have reached its bottom against the US Dollar but the chart above for XRP/BTC demonstrates what is possible if XRP/BTC RSI breaks out of the triangle and continues downwards. The price has already breached 100 EMA on XRP/BTC even though it has held 100 EMA on XRP/USD. DeMarker indicator also suggests that the price has reached its bottom and is not likely to fall lower. However, if it has to fall lower to retest the support line, it would have to be done in an extended timeframe which would push Ripple (XRP) into a bear market, which again is unlikely at this point.
If XRP/BTC begins a next cycle at this stage, it is likely that it will break out of this ascending cycle at the end of that cycle, to the upside. A development like that would have to be backed with strong fundamentals and big developments at the markets, something like a large financial institution using Ripple’s XRP for liquidity sourcing to replace its existing nostro accounts or credit card companies using XRP for faster and more secure transactions.