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Ripple (XRP): Fractal Similarities Point To Explosive Breakout In Early 2019

 
Ripple (XRP): Fractal Similarities Point To Explosive Breakout In Early 2019
Breaking News / Cryptocoins / Analytics / Ripple

Ripple (XRP) is following the exact same fractal it formed back in 2017. The similarities were visible since the beginning of September but now the big picture is clear without any doubt. Ripple (XRP) has already completed the Oval and Circle phases of the fractal. It is about to enter the triangular phase that it is expected to break out of in early 2019 to possibly reach a new all time high. Considering that 2018 has been a heavy bear market and sentiment will take some time to recover, it would be very impressive for Ripple (XRP) to reach a new all time high this soon. That being said, we have pointed to a mini altcoin season in some of our previous analyses.

It is not clear yet whether any of the other cryptocurrencies might be able to reach a new all time high that early in 2019 but as far as Ripple (XRP) is concerned, the big picture is clear. Considering that Ripple (XRP) has done a good job at respecting investors’ wishes and has performed better than the rest of the market for the most part, it can be expected that Ripple (XRP) may continue to trade in the same manner again. The RSI on the daily chart for XRP/USD is currently in oversold territory and is now bound for a reversal. This would be an ideal point for entering long positions as the risk/reward is now very low. Volume is starting to return back to the market and trading activity is rising. Ripple (XRP) has already seen a lot of interest which has led to it replacing Ethereum (ETH) as the second largest coin by market cap.

If Ripple (XRP) continues to rise at its current pace, we can expect it continue to remain as the second largest coin by market cap. This has more to do with investors losing interest in Ethereum (ETH) than a rising interest in Ripple (XRP). It also gives Ripple (XRP) a unique positioning advantage by making it a direct Bitcoin (BTC) competitor. Ripple (XRP) enthusiasts have no beef with Ethereum (ETH) or any other coins. They keep attacking Bitcoin (BTC) by calling it old, slow and outdated. A lot of Ripple (XRP) enthusiasts became Ripple (XRP) investors only because they believe Ripple (XRP) might eventually take over Bitcoin (BTC), not necessarily in terms of market cap but in terms of usability and adoption. Given the fact that Ripple (XRP) currently is a lot faster, cheaper and efficient than Bitcoin (BTC), it does seem quite possible.

Chart for XRP/BTC (1D)

There is no doubt that the purpose of Bitcoin (BTC) was not to solve issues of transaction cost, speed or efficiency. The sole reason behind its inception was to give people the freedom to be in charge of their own finances instead of having to blindly trust a government or a bank. However, soon after the inception of Bitcoin (BTC), a lot of people came to realize that cryptocurrencies can also be used to solve other problems. The team behind Ripple (XRP) used it to solve major banking problems. Sending money back and forth across borders used to be costly, time consuming and inefficient before Ripple (XRP) came into existence. Ripple (XRP) may not be able to do what Bitcoin (BTC) was originally created to do but it is making major breakthrough in the banking industry by solving a trillion dollars problem.

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