Ripple (XRP) had a long streak of bullish rallies these past few days as the price rallied straight through strong resistances from $0.25 to $0.50 in matter of just four days! That is a 100% increase in a period of four days. This rally is even more astounding when you consider that the rest of market is still at a standstill and there is no clear direction. Ripple (XRP) investors on the other hands seem to be very clear about where the market is headed next. This is why many in the crypto community believe that Ripple (XRP) might just have kicked off the altcoin rally or it might be the most elaborate bull trap we have ever seen.
Technically, Ripple (XRP) is not in the clear yet. The price has had an impressive rally but the 200 Day EMA resistance will be a tough one to break. The third day candle of this rally tested the 200 Day EMA resistance as seen on the above daily chart for XRP/USD. However, as we can see, it was strongly rejected. The fourth day candle is now attempting to test it again but technical conditions have run into overbought territory and it might be difficult for Ripple (XRP) to perform its magic at this point. This does not mean though that the bulls are willing to give up. The price is likely to retrace a bit in the next few days but ultimately, it will gather the strength to break past this resistance in the near future. Until recently, the 21 Day EMA resistance is what has been a strong resistance for Ripple (XRP) and as we can see on the above chart, the price has traded below this line for the most part since the beginning of the correction. However, to the surprise of many, it broke this resistance with one green candle in its first attempt and then headed straight up as there was no solid resistance.
Ripple (XRP) may trade sideways until it breaks the 200 Day EMA resistance on XRP/USD but the above weekly chat for XRP/BTC shows that it is already in the clear against Bitcoin (BTC). The price has just formed one of the four weekly candles that form a part of one complete cycle for XRP/BTC. If history is any indication, we can expect to see three more such candles before a correction. This is how it has always happened. Those waiting for the perfect bottom and looking for an overall transition of sentiment always miss the bullish rally and end up buying at the top when the fourth green candle is formed and the price of Ripple (XRP) has peaked. By then the rally is over and the correction begins. Realizing this, many investors have thrown their weight behind the Ripple (XRP) rally in order to profit off the rally even though they realize that the overall market may yet take some time to turn from bearish to bullish.