Ripple (XRP) has defied Bitcoin (BTC)’s gravitational pull these past few weeks. The above 1H chart for XRP/USD
shows that Ripple (XRP) has surged aggressively these past few days. There have been no signs of a slowdown. However, all of this might soon be coming to an end as Ripple (XRP) risks major sell off short term. Ripple (XRP) has entered an extended rising wedge on the 1H timeframe. The price is extremely likely to fall below this rising wedge towards the near term support. Ripple (XRP) had previously formed a strong support base between $0.425 and $0.437. If the price falls to this level in the near future, we will see a double bottom formation. Technical indicators are also ripe for extended sell off. Wave trend analysis for XRP/USD hints continued decline. RSI shows that there is room for further downside.
The crypto community has been running behind Ripple (XRP) with a magnifying glass to see what exactly might be the cause of this rally. So far, there does not seem to be any plausible explanation for Ripple (XRP)’s independent moves. However, interest in Ripple (XRP) has been on a steady rise which is readily visible in the crypto community. Many investors believe that Ripple (XRP) can tap into the trillion dollars forex market. Very few experts actually believe that the upcoming currency crisis can be averted. There is an Economist article that dates back to 1988. It clearly says that in 2018 the world will have one digital currency known as, “The Phoenix”. To some, “The Phoenix” is Bitcoin (BTC), but to others it is Ripple (XRP).
Unlike Bitcoin (BTC) and Ethereum (ETH), Bitcoin (BTC) and Ripple (XRP) are direct competitors in the same space. Most Ripple (XRP) investors believe that Bitcoin (BTC) was the first experiment, but today it is an outdated technology. Ripple (XRP) is a lot faster and cheaper compared to Bitcoin (BTC). However, unlike Bitcoin (BTC) Ripple (XRP) is not distributed very fairly. Besides, it is not decentralized like Bitcoin (BTC). So, it does not make a lot of sense why it might eventually replace Bitcoin (BTC). However, there are others who argue that Bitcoin (BTC) adoption will take time. Therefore, in the meantime, Ripple (XRP) can be a big thing as it can readily solve our current banking problems.
This chart for XRP/BTC
is very hard to interpret. This is because for the first time in Ripple (XRP)’s history, we may see something out of the ordinary. Previously, XRP/BTC would form three or four consecutive weekly candles before a correction would kick in. This time, it has already formed two candles, but the second candle is not an elongated candle as before. It is a very small candle that also characterizes a doji formation. This has not happened before in Ripple (XRP)’s history. This doji can be a sign of bullish continuation and Ripple (XRP) might rally in the weeks ahead. However, its weekly RSI is close to topping out. Given its independent moves, it cannot be said with certainty if Ripple (XRP) will reach a new all time high in dollar terms. This is because the XRP/BTC pair will most likely top out before that can happen.