Ripple (XRP) has done really well in the past few days when the rest of the market had succumbed to sell pressure. It did a lot better than Bitcoin (BTC) and has still declined less than 1% while most cryptocurrencies are down more than 2%. This confirms our view that Ripple (XRP) is poised for a major break out and investors are going to want to profit off the upcoming rally. The number of margined longs for Ripple (XRP) shows that the bulls are still in control. The daily chart for XRPUSDLongs shows that the bulls are still in charge and prospects for XRP/USD are very bright in the short term. That being said, the entry of JPM coin does appear to have hurt Ripple (XRP)’s prospects long term.
While it is premature to say how much of an impact it will have on Ripple (XRP), we can say that the dominance that Ripple (XRP) enjoyed in its cross border payments industry is now likely to decline. Over the past few weeks, Ripple (XRP) has been constantly attempting to break out of a seven month long symmetrical triangle but it has not succeeded so far. If and when Ripple (XRP) succeeds to break out, this next move would be hard to catch and the price would be trading close to the 200 day moving average soon after the break out. This is because the daily trading volume has declined significantly and any strong moves that we see now will most likely be abrupt. This means that the price could shoot up or fall down before most retail traders have the chance to get in or get out. So far, the probability of a break to the upside remains high compared to a break to the downside.
Ripple (XRP) is trading above the 50 day moving average and has just reached the extreme end of the symmetrical triangle it has been trading in. So far, this is very bullish and there is every reason to expect a break out to the upside. Trading conditions on the daily time frame also support such a move. If this move triggers the golden cross and the 50 day moving average ends up crossing above the 200 day moving average, we could see Ripple (XRP) rally hard in the weeks ahead. The weekly trading conditions for XRP/USD are also a lot more favorable for such a rally compared to other cryptocurrencies.
This symmetrical triangle seen on the daily chart for XRP/USD can also be interpreted as a bullish pennant. If we look at the price around September, 2018 we can see that the price broke out to rally but was caught inside a pennant which slowed it down and allowed it to cool off before its next big move. In the case of XRP/USD, this pennant also resulted in effectively erasing most of the September, 2018 gains which is why we prefer to refer to this as a symmetrical triangle. However, the point is that XRP/USD has been long overdue for a strong move to the upside and it would not be surprising if this turns out to be that moment.