Ripple (XRP) is at an interesting point in time as the price is currently days away from a massive breakout against Bitcoin (BTC). The weekly chart for XRP/BTC shows how oversold Ripple (XRP) currently is against Bitcoin (BTC). The price is currently trading above the 50 day moving average but could soon break out of the symmetrical triangle to shoot to the upside. This breakout has the potential of being of the strongest breakout in Ripple (XRP)’s trading history. We do not know yet what the catalyst for this breakout might be but the charts tell us that something big is in the offing. Ripple (XRP) is currently down for the day and the bears might take it as a sign of weakness as XRP/BTC has closed the past three weeks in red.
The market has been hard on Ripple (XRP) since the beginning of the year. The cryptocurrency which is usually seen leading most rallies during bullish and bearish times has been the victim of bad news and negative developments for the last few months. Ever since the JPM Coin announcement, we have seen a loss of bullish momentum in XRP/BTC. This has been made worse by rising concerns regarding Ripple (XRP)’s legal status. Regulators are yet to term Ripple (XRP) a security or a non-security. No matter how they rule, this is going to have important consequences for Ripple (XRP). If Ripple (XRP) is classified as a non-security like Bitcoin (BTC) and Ethereum (ETH) as we expect, then the price could see a major boost and interest in Ripple (XRP) will rise significantly.
Ripple (XRP) has already broken out against the US Dollar (USD) but it continues to trade below the 50 day moving average and does not show any signs of a bullish comeback. However, the trading conditions are now oversold on the daily time frame which means we could see a rise in bullish momentum in the near future. XRP/USD has been consolidating along the 50 day MA for the past few weeks which means it could shoot up towards the 200 day moving average any time now. If the price ends up rallying past the 200 day MA, we could see a golden cross form which would be even more bullish for Ripple (XRP) and could see the price rise more than 100% from current levels.
Before the beginning of this year, interest in Ripple (XRP) was on a steady rise. There were news of partnerships and adoption by big banks and financial institutions. Investors and analysts were talking about how Ripple (XRP) had a better chance at mainstream adoption compared to Bitcoin (BTC). However, all of that soon faded away under the weight of a few negative developments. Santander just recently apologized on Twitter for saying earlier that one of their services uses XRP. They apologized and clarified that the service uses only xCurrent and not XRP (xRapid). The sentiment regarding Ripple (XRP) is extremely pessimistic at the moment which means that it is high time we see a trend reversal especially as the price is on the verge of its biggest breakout in months.