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Ripple (XRP) Is On The Verge Of A Game Changing Breakout

 
Ripple (XRP) Is On The Verge Of A Game Changing Breakout
Breaking News / Cryptocoins / Analytics / Ripple

Ripple (XRP) is still the second largest coin by market cap. The 4H chart for XRP/USD shows that the price is currently trading in a small IH&S inside a large IH&S. This is a very interesting development because it could lead to a game changing breakout in the near future. Market cap difference between Ripple (XRP) and Ethereum (ETH) remains more than $3 billion. If Ripple (XRP) follows its current trajectory to complete two IH&S patterns in the months ahead, we would see this gap grow by a lot more. The technicals for XRP/USD already point to such a scenario but the fundamentals are also better than they have ever been. Ripple (XRP) is signing partnerships left and right with major financial institutions that are ready to buy billions of dollars’ worth of XRP.

RSI for XRP/USD is overbought at the moment and the price is likely to retrace to the boundary of the large IH&S to complete the right shoulder of the smaller IH&S pattern. This is a very beautiful arrangement. As the small IH&S pattern comes to completion, we should see the XRP/USD rise to the top of the large IH&S to form the head. After that, we will see the price retrace to complete the right shoulder of the major IH&S which will set the ground for an ultimate break out past $1 in early 2019. This coincides with the mini altcoin rally that we have long been anticipating. It also shows that the price will retrace further around February which again is something that we have pointed out in our previous analyses.

As we have seen in the past, Ripple (XRP) leads the way in gains during a bull market despite being a large cap coin. This goes on to show that there is a strong demand for this cryptocurrency and that demand is only going to grow over time as adoption grows. So far, we have not even seen any major financial institutions use XRP for their liquidity solutions. Major financial giants like Western Union have experimented with XRP in the past but they have yet to use XRP to replace their nostro accounts. That being said, soon as we see a single financial institutions start using XRP, we will see a large number of other institutions follow suit which could result in a skyrocketing demand for Ripple (XRP). The daily chart for XRP/BTC already shows Ripple (XRP) trading in a giant bullish pennant against Bitcoin (BTC).

This means that Ripple (XRP) is all set for an explosive breakout against Bitcoin (BTC) in the near future. The reason Ripple (XRP) is at a more favorable point compared to most cryptocurrencies is because it did well even in the bear market. It did not fully correct with the rest of the market and preserved its gains better than most other coins. This alone puts Ripple (XRP) ahead of most cryptocurrencies. As the market recovers, we can expect to see Ripple (XRP) rise with the rest of the market. Given that Ripple (XRP)’s technical as well as fundamental outlook is far better than the rest of the market and that Ripple (XRP) has a history of leading the market in terms of gains, it would be reasonable to assume that the next breakout would be a game changer for Ripple (XRP), one that will widen the market cap gap between Ripple (XRP) and Ethereum (ETH), putting it in a direct competition with Bitcoin (BTC).

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