The altcoin market has slowly begun to rally and XRP, in particular, has risen by 75% since the start of 2020. Other altcoins like Bitcoin SV have surged by over 200% since the start of 2020 as well. At press time, the price of XRP was recorded to be $0.3275, and this is after its 55% surge in just under 18 days. It would seem like volatility has finally returned to the cryptocurrency market. Even with the volatility, however, the price needs to have a correction, especially after the aforementioned exponential rally.
Source: XRP/USD on TradingView
There is a possibility of XRP registering sideways movement since it just finished a rally. This sideways movement will end with the price collapsing down to the immediate support zone at $0.30, which is an 8% drop away from the current price. The likelihood of this level holding up is low, something that will eventually cause the price to fall to $0.281.
Further, the RSI indicator had already breached the overbought zone. And while it was attempting to reclaim its position in the overbought zone, at press time, it was facing some resistance.
There is a probability that the sideways movement of price, as mentioned above, could form a bull flag or other bullish continuation patterns. If this materializes, this could push the price higher to $0.3738. However, the chances of that happening hinges on XRP’s correlation with BTC, which has been relatively high at 0.65. Another factor that plays a role in pushing the price higher is the alt season, which seems to have started as Bitcoin dominance is beginning to fall.
Source: BTC/USD on TradingView
Generally, the alt seasons have been recorded as Bitcoin’s dominance fell. Hence, the present decline in BTC dominance could have sparked the next alt season. Additionally, BTC dominance also depends on the hash rate of Bitcoin. Due to multiple geopolitical events like the U.S-China trade war and the Coronavirus, the Chinese mining industry is being affected. The speculation here is that the hash rate’s decline is mainly due to the global pandemic which originated in the Wuhan province of China. Since Bitcoin mining is heavily concentrated in China, the latest pandemic scare might be affecting Bitcoin’s fundamentals.
50 Mln XRP Sent Between Large Crypto Exchanges, Japanese Bitbank Involved
Over the past two days, 50 mln XRP has been moved between three large trading platforms and the Japanese BitBank, which, some assume, may join a new ODL corridor soon
The XRPL Monitor bot has reported several massive XRP transactions that total 50 mln XRP ($13,790,820).
Ripple’s milestones in 2020 so far
This year, Ripple has already made a few major moves – Brad Garlinghouse mentioning a possible IPO this year (though later on he stated he was largely misunderstood) and Brad Garlinghouse getting featured in an interview with CNN’s Julia Chatterley for the second time. This may suggest that Ripple is the only crypto company so far that has been of interest outside the community.
However, as reported by U.Today earlier on Saturday, the head of Tron, Justin Sun, had also made it into the CNN studio for an interview.
Besides, recently it was revealed that Ripple had been included into top 100 cross-border payment companies.
50 mln moved – Binance, Huobi, Bitbank
Since XRP is one of the most popular cryptocurrencies, large transactions made with it attract a lot of public attention.
This time, XRPL Monitor has spotted four transfers totalling 50 mln XRP.
- Binance – Huobi
- Bithumb – Bithumb
- Bitbank – Bitbank
- Anonymous wallet – anonymous wallet
Image via Twitter
Earlier, it was reported that some believed Binance.US and Bitbank were trialling a new ODL corridor for transferring XRP.
XRP Remains Above 200-days EMA But Will Bears Break Beneath?
- XRP saw a sharp 17% price drop over the past week, making it the weakest performing top-3 cryptocurrency.
- Although the momentum has slipped into bearish favor, the bulls battle to remain above the 200-days EMA.
XRP dropped by a steep 17.6% over the past week, bringing the price for the cryptocurrency down to $0.273. It had rolled over at resistance at around $0.337 and started to decline. We were hoping the support at $0.28 (.5 Fib Retracement) would hold, however, it has since dropped further lower.
XRP remains ranked as the 3rd-largest cryptocurrency with a total market cap value of around $12.00 billion.
XRP Price Analysis
XRP/USD – Daily CHART – SHORT TERM
Since our last analysis, XRP dropped beneath the support at the .5 Fib Retracement level and continued further lower. We can see that it is finding support at $0.268 as the bulls manage to keep the market above the 200-day EMA.
Short term prediction: NEUTRAL
XRP remains neutral but is in danger of turning bearish if it was to fall beneath the support at $0.24. It would need to climb above $0.3 to turn bullish again.
If the sellers push beneath the support at $0.268, the first level of additional support is expected at $).264. This is provided by the .618 Fib retracement and further bolstered by the 200-days EMA and therefore is considered as pretty strong.
Beneath this, support lies at $0.26, $0.25 (100-days EMA) and $0.243.
On the other hand, resistance is expected at $0.28, $0.29, and $0.30. If they can break $0.30 the market would be considered as bullish again. Above this, resistance lies at $0.308, $0.3177 and $0.3262.
The RSI has indeed slipped beneath the 50 level to show that the sellers have taken charge of the market momentum right now.
Support: $0.268, $0.264, $0.26, $0.25, $0.243.
Resistance: $0.28, $0.29, $0.30, $0.308, $0.3177, $0.326, $0.377.
XRP Could See Massive Gains as Bulls Defend Critical Multi-Year Support
XRP investors witnessed some bearish price action earlier this week when the cryptocurrency plummeted from highs of $0.34 to lows of $0.28, which is where it was able to find some strong support that allowed it to reclaim its position above $0.30.
Then, however, Bitcoin’s unprecedented flash crash sent shockwaves throughout the crypto markets, leading XRP and other major altcoins to plummet significantly.
Despite this overt short-term bearishness, one analyst is noting that XRP has been able to reclaim a key multi-year support that it recently dipped below, showing that another massive uptrend could be imminent.
XRP Inches Higher as Bitcoin Shows Signs of Recovering
At the time of writing, XRP is trading up just under 1% at its current price of $0.275, which marks a slight climb from recent lows of $0.26 that were set at the bottom of its recent selloff.
It is imperative to note that the embattled crypto has been severely underperforming Bitcoin in the time following its recent drop, as BTC has been able to climb from lows of $9,200 to highs of $9,700.
In the near-term, $0.30 remains the key region that analysts are watching, as a sustained flip above this level is critical in order for the crypto to incur a sustainable uptrend.
Some analysts, however, still remain wary of the cryptocurrency’s mid-term outlook.
Bitcoin Jack – a popular cryptocurrency trader and commentator – explained in a recent tweet that he thinks $0.20 seems like a decent entry point.
A drop to these levels wouldn’t be unprecedented, as it was trading here just under one-month ago.
Could Bull’s Defense of this Key Level Spark an Intense Uptrend?
One recent development that is counting in bull’s favor is the fact that XRP’s rally over the past few weeks has allowed it to recapture a key support level that it had lost during its drop to lows of $0.18.
Caltrades, a popular cryptocurrency analyst on Twitter, spoke about this occurance in a recent tweet, telling his followers that another bounce at this key multi-year support at roughly $0.25 could confirm a bullish inverse head and shoulders pattern.
“XRP fell through a 2 year support but bounced and just smashed straight through it. I think a lot are underestimating the importance of this. If we get a pull back into this 2 year support again I think it will catapult XRP higher very, very quickly,” he explained.
If XRP sees some slightly further downside from its current price levels but posts a strong defense of this multi-year support level, it could soon start a massive uptrend that leads it to set fresh year-to-date highs.