This Reason Is Why Analysts are Worried About Ripple’s XRP Despite 35% Rally
Much like many other crypto assets, XRP has been on a tear over the past month. Below is a chart from TradingView which shows that the cryptocurrency, third-largest by market capitalization, has gained 36% against the U.S. dollar since bottoming at $0.173 in the middle of December.
In spite of this surge, which some say has brought XRP and other cryptocurrencies out of the mini-bear markets started in June 2019, a leading analyst has argued that it is difficult for him to be bearish on the coin.
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XRP Still Under Key Resistance On Macro Basis
Popular cryptocurrency trader CryptoDude, who has done well trading the recent price action with Bitcoin, Ethereum, and others as evidenced in his Twitter feed, recently said on Twitter that it is “difficult for me to be bullish on Ripple right now.”
Backing his assertion, he looked to a chart of XRP against the U.S. dollar on a monthly basis. The trader depicted that despite the recent 35% surge off local bottoms, prices not seen in years, the cryptocurrency remains decisively below a key resistance that has been absolutely essential for the asset’s past two to three years of price history.
What’s more, it was actually rejected at the resistance level, suggesting the macro bear trend for XRP remains intact.
$XRP Difficult for me to be bullish on Ripple right now. pic.twitter.com/pXmfZbOtyp
— CryptoDude (@cryptodude999) January 21, 2020
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It isn’t only that. As reported by NewsBTC earlier, per a Telegram channel tracking an indicator designed to spot reversals before they happen is suggesting that the two top altcoins Ethereum and XRP are due for a deep retracement.
The indicator is the Tom Demark Sequential, better known as the TD Sequential. The indicator printed a “Sell 9” candle on for both the daily charts for XRP and Ethereum against the U.S. dollar, suggesting that both of these top altcoins will fall in value in the days ahead.
Some Beg to Differ
There are some that beg to differ, however.
Analyst CryptoWolf recently noted that per his earlier analysis, XRP has finally started to decisively break out of a falling wedge pattern that has constrained price action for the past seven months. The cryptocurrency has also surmounted a key horizontal resistance that has been important on a macro basis.
With this in mind, he suggested in the below chart that he expects for XRP to target the 0.382 Fibonacci Retracement of the entire falling wedge over the coming weeks, which suggests a 25% rally is on the horizon.
XRP breaking out. pic.twitter.com/QIs4z3uWZ4
— CryptoWolf (@IamCryptoWolf) January 18, 2020
On the fundamentals, BitPay, the world’s largest crypto payments processor, just added support for the cryptocurrency. Also, Ripple, a fintech company closely associated with the cryptocurrency, has just partnered with one of Thailand’s oldest commercial banks to create a remittance/international payment solution.
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