Over the past day or two, the crypto market — from Bitcoin to Ripple’s XRP — has begun to slow. The prices of the leading digital assets have finally taken a breather after days and days of uptrend without too much of retracement.
While some fear that this slight drop in the price of cryptocurrencies could be a precursor to a greater move lower, XRP just printed an extremely bullish signal that suggests it will be going higher in the coming weeks and months.
Ripple’s XRP Prints Key Buy Signal on Long-Term Basis
Per HODL2100K, a prominent cryptocurrency trader, XRP’s weekly chart just printed an extremely positive signal, with his IchiEMA indicator printing a buy on last week’s price candle, which brought prices dramatically higher.
This is important: previous buy signals were seen prior to strong increases in the price of the altcoin.
- In May of 2019, for instance, the IchiEMA registered a buy before the cryptocurrency rallied by dozens of percent higher.
- In September, prior to Ripple’s Swell conference, the same signal was seen, which preceded another move that brought XRP dozens of percent higher.
- But most importantly, the signal was seen two weeks before XRP began its infamous surge at the end of 2017, during which the asset gained over 1,000% in under a month’s time, rallying from $0.20 to a price above $3.00.
This historical precedent of buy signals issued by this indicator for XRP suggests that the asset is on the verge of exploding higher.
Indeed, trader Inmortal Technique recently revealed that XRP just simultaneously broke past two key long-term resistances: the downward resistance formed in September of 2018, which has constrained price action since, and a downtrend level that has stopped rallies over the past few months.
Will Follow Bitcoin
Although there are these technical signs, it is important to note that the price of XRP will follow the trajectory of Bitcoin due to the simple market dynamics in cryptocurrency if everyone following the leader.
Fortunately for buyers of the altcoin, though, Bitcoin is purportedly still in an uptrend, despite the drop and any further drawdown that will be sustained in the coming days.
Bitazu Capital’s Mohit Sorout, for instance, wrote on February 6th that “dips are for buying,” referencing a chart showing that Bitcoin’s 100-day moving average was just crossed by the 50-day, suggesting the BTC trend is starting to heavily favor bulls.
G O L D E N C R O S S
— Mohit Sorout 📈 (@singhsoro) February 6, 2020
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