Ripple (XRP) investors have seen some massive returns on investment these past few weeks but there are reasons to believe that this rally is not over yet. Ripple (XRP) had to retrace after an aggressive rise from $0.30 to $0.80. The above hourly chart for XRP/USD
shows that the price has now entered into a major bull flag. This is a very bullish development for Ripple (XRP) which could push the price back above $0.80 in the days ahead. The likelihood of a further price retracement seems low at this point but even if it did break, the price would find a strong support atop the 200 EMA.
Ripple (XRP) has been on a roll since uncertainty surrounding Bitcoin (BTC) ETF decision became clear. The price has now seen a major boost which resembles the typical trading pattern of Ripple (XRP) during its bullish rallies. Short term, technical conditions favor a bullish continuation for Ripple (XRP) as the RSI has almost bottomed out in the oversold territory. Wave trend analysis for the above chart also shows that the price is likely to continue trading higher for now. It is pertinent to note that Ripple (XRP) investors are some of the most optimistic investors in the cryptocurrency space. It is not surprising to see that they were the first to kick off the bullish season. Other large cap coins might struggle for a while to turn around but Ripple (XRP) has already chosen its direction. Last week, XRP/USD formed its first green candle on the weekly chart marking the beginning of a new trend. There is little doubt as to whether Ripple (XRP) has started a new trend or not. Majority view right now is that the new trend has already begun as Ripple (XRP) closed its first green candle above the downtrend resistance last week.
Historically, we have seen that Ripple (XRP) forms three or four more such candles in succession before a correction kicks in. This means that investors have a few more weeks to ride this train before it loses its charm. It is also very clear at this point that the altcoin rally has commenced as most cryptocurrencies are beginning new cycles against Bitcoin (BTC). Ripple (XRP) has done the same, but unless the price of Bitcoin (BTC) appreciates substantially, it will be quite difficult to see Ripple (XRP) making a new all time high during this cycle despite the fact that it has been rising at a very aggressive pace.
The above chart for XRP/USD
on the weekly time frame shows that Ripple (XRP) has breached both the downtrend resistance as well as the 21 Week EMA and successfully closed above it. Today, we have seen Ripple (XRP) begin the week in red, but it is unlikely to fall below the 21 Week EMA. Some analysts are of the view that it is not prudent to invest at this stage, and that investors should wait for a retracement. However, my view is that if they are to wait for a retracement, they might have to wait another eight months or more, because the long term trend is very clear and as unrealistic as it may seem, this is the way it has always been.