Ripple (XRP) like the rest of the cryptocurrency market is currently trading above the 200-day moving average. However, the manner in which it has rallied recently is far from natural. The recent move past $10k in Bitcoin and subsequently the rest of the market appears to have been the result of a fake $45 million buy order. At this point, most of us are aware that the majority of trading in the cryptocurrency market is fake. The volume just does not back up the moves that we are seeing which is a clear indication of a few big players controlling the market. Recent moves in the market have inflicted a lot of pain on the bears but all of that may be about to come to an end.
Since the beginning of the bear market, the whales have exploited every opportunity to the fullest by shaking out as many retail bears as possible and trapping in retail bulls before every decline. All of that continued for a long time but this time we might see something different. The daily chart for XRP/USD shows that Ripple (XRP) has already faced rejection at the previously broken market structure but it is now also close to a decision point as it is about to test the next fib circle. If the price breaks below this fib circle, we would expect it to decline within the pitchfork to continue a decline to the support at $0.147. However, if XRP/USD declines down to that support once again, we can expect it to be broken this time.
The weekly chart for XRP/BTC shows that Ripple (XRP) is also about to make an important decision against Bitcoin. It is very interesting to see that the descending triangle that we see on this weekly chart extends all the way to 2017. This means that it could be Ripple (XRP)’s most important decision in years. It could also mean that the cryptocurrency bubble might finally pop in the same way as the dot com bubble popped.
The stock market is at an all-time high which has veteran investors like Ray Dalio and Warren Buffet thinking about their strategies for the next market crash. Meanwhile, there are people in this market buying tokens that are not even equity in a startup! The interesting part is, most of these “blockchain projects” can constantly flood the market with more and more of these worthless tokens that are given fancy names like “network tokens” or “utility tokens”. Unfortunately, most people in this market are first time investors that consider buying XRP similar to buying stock in Ripple, the company which couldn’t be further from the truth. These developments indicate how easy it has become for people to throw money around and how the economy might be on the verge of a major reversal one that could be extremely devastating for the stock market in general and the cryptocurrency market in particular.