Ripple (XRP) remains heavily oversold against Bitcoin (BTC) but there does not seem to be adequate hope of a trend reversal. The weekly chart for XRP/BTC shows the current weekly candle stuck between the 50 week moving average and the 61.8% fib extension level. If the price fails to break above this level by the end of the week, we could expect it to fall below the 50 week moving average as early as next week. This decline could pull the price all the way to the 127.2% fib extension level in the weeks ahead from where the price would be in a good position to find its bottom against Bitcoin (BTC) if it hasn’t already. Ripple (XRP)’s case is quite different than most other cryptocurrencies which is why we assume that Ripple (XRP) has already bottomed against Bitcoin (BTC).
The trading conditions for XRP/BTC as shown by the weekly chart are extremely oversold and the price has been long overdue for a trend reversal. The same cannot be said of most other cryptocurrencies in comparison to Bitcoin (BTC). This is why we also believe that Ripple (XRP) is a good hedge not just against Bitcoin (BTC) but the rest of the cryptocurrency market that dances to the tune of Bitcoin (BTC). If Bitcoin (BTC) starts to fall, we believe Ripple (XRP) will hold its ground because it is already heavily oversold against Bitcoin (BTC). On the other hand, if the market starts to recover, we would expect it to rally harder to capitalize on that long overdue trend reversal. The past few weeks have been relatively negative for Ripple (XRP) because a lot of its competitors seem to be more actively challenging its monopoly now more than ever. This has got a lot of Ripple (XRP) investors concerned about the future of Ripple (XRP).
Ripple (XRP) has been and continues to be one of the best cryptocurrencies to trade but from an investment point of view, those that have been buying XRP/USD from as high as $3 have suffered major losses so far. This does not mean that the price will not recover to reach a new all-time high again but it means that Ripple (XRP) is not such a promising cryptocurrency yet that people will hold on to no matter what. In other words, we do not see stocks decline in this manner (except for penny stocks) because they intrinsic value that makes them valuable.
Ripple (XRP) like many other cryptocurrencies is still in experimental stages for the most part. We are in very early days in this market and most cryptocurrencies are nothing more than speculative tokens for different experiments. As time goes by and the market matures, maybe we will see less of these pumps and dumps but for now, even if the price of Ripple (XRP) is heavily oversold against Bitcoin (BTC), it can always decline a lot more in the weeks ahead before it bottoms out and begins a trend reversal.