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Ripple (XRP) Finds Strong Support At Historical Trend Line
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Ripple (XRP) Finds Strong Support At Historical Trend Line

Ripple (XRP) has finally found its strongest support in months. The weekly chart for XRP/USD shows Ripple (XRP) bouncing off a historical resistance that extends all the way to Jun 2017. This is not the only trend line support Ripple (XRP) has found. The chart shows that previous resistances during the downtrend have turned into supports. That way, the price has also found another trend line support (shown in yellow) which further strengthen the prospects of a trend reversal. The bear market seems to be finally over for XRP/USD as the price has now corrected to its full potential. Just like the previous bear market, we have seen Ripple (XRP) form a double bottom. Next we will see similar price action to the one between June and November last year.

This would mean that the price of Ripple (XRP) is likely to recover short term but it is unlikely to reach a new all time high before mid 2019. The price is expected to consolidate all the way till mid 2019 after which it is expected to breakout aggressively to reach a new all time high possibly around $5. Ripple (XRP) has recently seen a new wave of investors flock towards it, even during the bear market. While most cryptocurrencies are losing entire business or development teams to the market meltdown, Ripple (XRP) seems to be the only cryptocurrency gaining from the turmoil. Not only has Ripple (XRP) managed to hold its ground better than most coins, it has also taken the opportunity to stage a coup against Ethereum (ETH). As of now, the difference between the two is more than $3 billion which is unlikely to be bridged anytime soon.

If Ripple (XRP) continues to grow at its current pace, it may even challenge Bitcoin (BTC) at some point in the future. The weekly chart for XRP/BTC already shows that Ripple (XRP) is on the verge of a major breakout against Bitcoin (BTC). The cryptocurrency market does not make much sense right now. The product of a hash war between two Bitcoin Cash teams, Bitcoin SV is now just one step behind Stellar (XLM) and is already ahead of Bitcoin Cash (BCH). All of these developments point to one thing and that is that small cap altcoins or ICOs are not the only ones in danger. Even large projects like Bitcoin Cash (BCH) can be at risk of going belly up. This realization has made a lot of investors rethink their approach to investing in cryptocurrencies.

The best thing about a bear market is that you can clearly see how much a certain project is worth. If Ripple (XRP) can rise to second spot during a bear trend, that speaks volumes regarding its future outlook and the faith of investors in this project. The average investor with less than 5 Bitcoin (BTC) in total holdings is very unlikely to sell at these levels. Most of the bloodbath that we have seen recently can be attributed to major sell offs either by companies desperately looking to stay afloat or by the likes of Roger Ver or Calvin Ayre paying for their mistakes. Either way, Ripple (XRP) has managed to outperform all of them and that is going to count for a lot when the dust settles.

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Fakhan

I work as the key Trading Analyst for Crypto Daily and provide the team with regular analyses and updates regarding the technical performance of all cryptocurrencies on the market. I am responsible for the production of articles and posts for Crypto Daily’s own technical analysis section and spend my time monitoring and commenting on the varied moves the markets make on a daily basis.

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