Ripple (XRP) declined to its 38.2% fib retracement level against Bitcoin (BTC) and is now preparing for a trend reversal. The daily chart shows that the price is still far away from the 50 day exponential moving average but if it rebounds successfully off the 38.2% fib retracement level, we could see it shoot towards the top of the descending triangle. It is important to note that Ripple (XRP) remains at risk of a major correction long term but short-term, it is primed for further upside against Bitcoin (BTC). Considering that BTC/USD is also primed for a rally towards $10,000 in the near future, it might be a good idea to consider going long on XRP/BTC to better capitalize on the upcoming rally. The price could also form a bull flag if it continues to trade sideways for the next few weeks.
As the daily chart shows, there is plenty of room for XRP/BTC to go up. We could see Ripple (XRP) keep investors hoping for the altcoin season even towards yearend. Cryptocurrency investors must realize that just as the price of cryptocurrencies, we have overhyped a few other things. For instance, a lot of analysts lay a lot of emphasis on four year cycles and the upcoming halvening. This is largely based on the assumption that the ongoing cycle will resemble the cycle that preceded it in terms of price growth and the time it takes. However, as we have seen so far, it is becoming clear that we are not in the 2015 part of the last cycle as the ongoing cycle will be longer than the previous cycle. This means that investors should really reconsider that we are on the cusp of a new bullish cycle. That being said, as aforementioned, the price is primed for a short term rally to the upside.
Ripple (XRP) is struggling to break past the 50 week exponential moving average. This week’s close is going to be critical to determine which way the price is going to go for the next few weeks. The trend line resistance is yet to be broken but the price has been consolidating around the 50 week exponential moving average for the past few weeks. As we have mentioned in our previous analyses on Ripple (XRP) a fake out or false break out to the upside cannot be discounted.
There is no reason to think that XRP/USD is about to start a new bullish cycle yet but if this trend line resistance is broken, a lot of retail investors will turn bullish again and will likely get trapped as the whales dump on them before the long awaited correction kicks in. Ripple (XRP) has been the face of controversies for the past few months. The price is currently in a make or break zone. If it breaks this trend lien resistance, we could see it rally higher in the weeks ahead till Bitcoin (BTC) tops out, but if it closes below the 50 week EMA; we could see the price decline towards $0.26 in the weeks ahead.