Ripple (XRP) Bulls Not Ready To Take Control Just Yet

Ripple (XRP) bulls are not ready to take control just yet even though the price has seen some bullish momentum over the past few days. As mentioned in one of our previous analyses, XRP/USD is about to do something that it has not done in eight months. It will have to break out of a big symmetrical triangle this month which will have important trading implications in the months that follow. The bulls seem likely to capitalize on the initial break out of this symmetrical triangle. However, so far the daily chart for XRPUSDLongs as well as the daily chart for XRP/USD shows that the bulls are not ready yet. If we look at the number of margined longs for Ripple (XRP), we can see that the bulls have had a good run and are now afraid to push further.

The daily chart for XRPUSDLongs shows that the number of margined longs has now run into a strong resistance and is expected to decline towards the trend line support in the days ahead. This means that we may not expect the breakout in XRP/USD this week. The breakout in XRP/USD is expected around mid-March. By then, the number of margined longs would have declined towards the trend line support ready to make a move to the upside. It is important to note that Ripple (XRP) bulls have managed to keep XRPUSDLongs above the 21 day exponential moving average so far. This means that we may expect a sideways corrected in the number of margined longs instead of a crash towards the trend line support.

The daily chart for XRP/USD has one of the most bullish outlooks of all cryptocurrencies. This is because the symmetrical triangle seen on this chart has not been broken yet despite several attempts in the past. However, the price has now reached the extreme end of this triangle and will have to make a move before the end of the month. Considering that the 50 day moving average has drawn so close to the 200 day moving average and the trading conditions short term are oversold, we expect this breakout to be to the upside eventually. We may see a break to the downside first to trap in some unsuspecting bears. This often happens around key turning points and there is no reason to expect any different this time.

Both the RSI and the Stochastic RSI on the daily time frame demonstrate sufficient room for a strong rally to the upside. It is pertinent to note that this rally has the potential to trigger a golden cross if the 50 day moving average ends up crossing above the 200 day moving average. That would be a very bullish development and it could see XRP/USD rise above $0.50 in a matter of days. That being said, ground reality points to the fact that the bulls are not ready to take control just yet and we might see a sideways break out before the next big move.