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Why a Top Analyst Believes XRP Price Bottomed and Will Burst Higher

Avatar Nick Chong 2 months ago

It is not a secret that altcoins, such as XRP,  haven’t done too well in 2019. While Bitcoin (BTC) is up over 90%, starting the year in the $3,000s and now trading at $7,200, a number of leading cryptocurrencies have actually posted losses on the year.

Although nearly all asset classes from precious metals to equities have posted record gains in 2019, Ethereum has lost 18% and XRP has collapsed by 47%, according to Bitcoin educator Jimmy Song.

Harrowing trend aside, a number of analysts have claimed that altcoins are on the verge of breaking higher.

XRP Shows Signs of Bottoming And Impending Breakout

Dave the Wave, a prominent technical analyst that months ago called the decline to the $6,000s in the price of Bitcoin, recently posted the below chart to Twitter, in which he shows that the XRP/USD chart is showing signs of bottoming.

Depicted in the chart is XRP’s entire price history, with the price action over the last two years being what is notable. He notes that XRP is in a clear falling wedge pattern, which itself is situated in a larger descending triangle, before drawing attention to the fact that the Moving Average Convergence Divergence (MACD) is looking as it did prior to 2017’s jaw-dropping XRP price spike by thousands of percent.

The implication of the chart: XRP is on the verge of breaking out of the aforementioned triangles in a violent move in the upward direction.

It isn’t only Dave who has observed positive signs appearing on the XRP/USD chart.

Per previous reports from NewsBTC, analyst Michael Van De Poppe, a trader at the Amsterdam Stock Exchange, recently suggested that the cryptocurrency is poised to break higher by 175% in 2020.

Unlike Dave, Van De Poppe ignored the technicals, but instead looked to price action trends in search of fractals, or repeating patterns on the charts. He found that XRP’s price action over the past few months is eerily reminiscent of a bottoming pattern put in by the cryptocurrency in late-2015 and early-2016, which was followed by a strong 125% bounce to pre-crash levels.

This price action playing out on the current charts will mean that by the middle of 2020, each XRP could be trading for $0.473 — 175% higher than current prices.

Related Reading: Could Ripple CEO’s Own 2020 Prediction Spell Trouble for XRP?

Ripple Sees Positive News Cycle; Could Help the Crypto

Dave the Wave’s observation that XRP is showing signs of bottoming comes amid a flurry of positive developments for Ripple Labs, the San Francisco-based fintech company closely affiliated with the cryptocurrency.

For those who missed the memo, the company earlier this month secured a large investment from an array of firms. SBI Group — a Japanese financial giant — and two other companies contributed a collective $200 million to Ripple’s Series C round, which valued the fintech upstart at $10 billion, higher than WeWork’s $8 billion.

Ripple is likely going to use those funds to expand its operations and help promote the adoption of its services, some of which utilize XRP.

Related Reading: Ethereum, XRP, and BCH: Why Traders are Optimistic on Altcoin Market
Featured Image from Shutterstock
Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering...

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