Crypto Analyst: Surge in Volume Off Lows Suggest XRP Will Finally Pump
XRP continues to disappoint its investors and community, by being unable to sustain anything resembling a rally over the course of the last year. Prior to that, each short-lived rally was sold down by Ripple themselves, further crushing any hope for positive momentum.
But now, a massive surge in volume after XRP exploded out of recent lows, suggests that the third-ranked crypto by market cap will finally pump and recoup the gains it lost during the bear market.
Spiking Trading Volume Indicates That XRP May Be Ready to Pump
Earlier in the year, XRP was among the altcoins that broke out from two-year downtrend lines, only to be strongly rejected back below them by the coronavirus-fueled Black Thursday selloff last month.
The powerful collapse sent XRP from nearly 30 cents per token to as low as 10 cents, setting a new bear market low for the third-ranked cryptocurrency by market cap.
Related Reading | XRP Buy Signals Stacking on Multiple Timeframes May Spark Ripple Recovery
Enormous sell volume supported the move down as stop losses were hit, and investors panic-sold fearing the worst. However, a retest of that lows recently put in on the XRPBTC trading pair, also saw an explosion in buying volume, which could indicate that the bottom is in, and XRP could soon surge, according to one crypto analyst.
Wouldn't be surprised to see $XRP finally pump. Some good volume flowing in off the lows after high volume selling was absorbed. If alts are strong it's one to watch to see if it follows $ETH pic.twitter.com/DySoyW9qZl
— Pentoshi (@Pentosh1) April 23, 2020
Will a Ripple Effect Kick Start a New Altcoins Season?
The analyst also concludes that this could be a signal that altcoins are showing strength, and Ethereum could follow XRP and outperform BTC in what crypto traders refer to as an altcoin season.
Major buy signals have triggered on the XRPBTC trading pair across multiple timeframes, further supporting the theory that XRP will soon experience a massive pump and cause alts to thrive once again.
Related Reading | XRP Reclaims Downtrend Line After False Breakout, What’s Next?
Further adding validity to the theory that an alt season is around the corner, is a breakdown of Bitcoin dominance from a long-term trendline. Now that the trendline has broken, and a bearish retest was confirmed, BTC dominance could soon plummet and give altcoins room to shine once again.
Alt season typically lead to life-changing wealth, and after over a full year of consolidation at lows, the asset class will either soon surge once again, or will eventually go to zero. Some analysts are telling investors to be prepared to go down with the altcoin ship, while others are accumulating at low prices in anticipation of mark up.
But what actually comes next is anyone’s guess. Will recession crush this asset class, or will inflation caused the fixed supply assets like XRP to surge?
Featured image from Pixabay