XRP Flashes Buy Signal At Bottom Of Potential Falling Wedge Pattern, Breakout Imminent

Tony "The Bull" Severino

1 year ago

3 mins read

xrpusd xrp ripple crypto buy signal flashes

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From the August monthly open to the high, XRP recorded nearly 25% gains on the month. Unfortunately for Ripple investors hoping for a new bull run, the altcoin was only able to hold onto just 1% of that as of the time of this writing.

But while things may look bleak for XRP’s recent rally, a buy signal has just flashed at the bottom of what appears to be a falling wedge chart pattern. This could signal a reversal is coming, and a breakout is imminent.

The 2020 Altcoin Market Recovery Leaves Ripple Investors Wanting More

The crypto market cap in 2020 was up nearly 100% at the high, prompting search terms for “buy crypto” to reach the highest level since the 2017 bubble. Ripple is also showing the most strength in its price action since then.

After three years of a downtrend, altcoins are finally recovering. Bitcoin is trading at well above 50% from its former all-time high. Meanwhile, other top-ranked crypto assets like Ethereum and XRP are still down significantly.

Ripple, for example, is trading below 30 cents. The altcoin’s former all-time high is well over $3. This means Ripple remains more than 90% down from its peak.

But after two full years of being the worst crypto market performer, the altcoin has finally begun to recover. The recovery has thus far sustained longer than past attempts, and although XRP has since lost much of the month’s gains, the rally may not be over yet.

XRPUSD Daily TD Sequential 9 Buy Setup | Source: TradingView

XRP Flashes TD 9 Buy Setup, Possibly Providing Momentum For Falling Wedge Breakout

Ripple’s 2020 recovery alongside the rest of the altcoin market, majors and small-caps included, could keep on going despite a recent pullback.

Nearly all of August’s gains have been erased, but XRP still has a strong July behind it.

With only days remaining in August, if prices remain at current levels, the monthly candle will close as a doji – signaling indecision. Doji can form at the top, but also can appear ahead of continuation.

On daily timeframes, as pictured above, the TD Sequential indicator has perfected a buy setup in XRPUSD.

Coinciding with the potential reversal signal, the 9-count was reached just as XRP touched the bottom trendline of a falling wedge chart pattern.

XRPUSD Daily Falling Wedge Continuation Pattern | Source: TradingView

Falling wedges can act as both reversal or continuation patterns, and are typically bullish patterns. Breakdowns from these patterns get especially violent, but the TD 9 buy setup implies upside ahead.

XRP’s 2020 rally may not be over, but a larger pullback will take place eventually. Whether that is now, or later on, is anyone’s guess. However, with crypto analysts expecting the real altcoin party to start in 2021, even if XRP dips, it could be time to buy.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
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In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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