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This Reason Is Why Analysts are Worried About Ripple’s XRP Despite 35% Rally

Avatar Nick Chong 2 months ago

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.

Related Reading: Here’s Why Wall Street Veteran Thinks Bitcoin Isn’t a Viable Money, Yet

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.

Related Reading: This Gold Bug Says Bitcoin is Worth $0 Because His “Wallet Forgot His Password”

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.

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.

Related Reading: Bitcoin Signal That Preceded 288% Rally About to Flash, and It’s Huge for Bulls
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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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