Huge XRP Rally Triggers Key Indicator to Light Up For First Time in a Year

Tony "The Bull" Severino

Last Updated: February 5, 2020 4:00 pm

3 mins read

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XRP has been rallying throughout the last week, pushing through downtrend resistance and is potentially ready to reclaim former highs.

The first step in an attempt at breaking above recent bear market rally highs is recapturing the 200-day moving average – a feat that XRP just achieved after the latest pump above.

XRP Recaptures 200-Day Moving Average Following Downtrend Breakout

Since the start of January, altcoins across the crypto market have been breaking through downtrend resistance and going on powerful rallies – some growing as much as 400% in a week’s time.

But one of last year’s poorest performers, XRP, has continued to lag behind the rest of the altcoin market and Bitcoin.

It’s only this past week where XRP broke out from downtrend resistance on both the USD and BTC trading pairs, causing the cryptocurrency to release built-up buying pressure and spring higher.

Upside targets could reach as high as $14 if the rally rises similarly to the last break of downtrend resistance.

But before that can happen, XRP needs to break through many levels of overhead resistance from each bear market rally top, and even before that occurs, XRP must hold above the 200-day moving average.

XRP just recaptured the critical trading indicator on its trading pair against Bitcoin, and doing so could be signaling a long-term trend change is brewing.

$XRP #Ripple daily – MA 200 recapture, first time since March of 2019#TheStandard pic.twitter.com/purFmZDCm4

— Cheds (Trading Quotes) (@BigCheds) February 5, 2020

Why The 200-Day Moving Average Matters to Crypto Investors

The number three cryptocurrency by market cap just broke above the 200-day moving average for the first time since March 2019, when the cryptocurrency fell back into an extended downtrend against Bitcoin. The altcoin trading above this level suggests that it could outperform Bitcoin for the foreseeable future.

The 200-day moving average is a long-term trading indicator based on a formula using the average price across the last two-hundred days of price action. It’s often used by “smart money” institutional investors as a signal to the overall long-term health of an asset.

The idea is that if an asset is trading below the 200-day moving average, the asset is in a downtrend. But if the asset is trading above the indicator, it’s in an uptrend.

With XRP breaking out from downtrend resistance after two full years of a bear market, any signs that an uptrend could be forming could spark an extreme wave of FOMO.

Considering the fact that XRP rose as much as 6,000% in the past in a matter of weeks, crypto investors will be watching closely for any sudden spikes, to ensure they don’t miss out on what could be life-changing wealth.

Featured image from Shutterstock

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.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

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.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

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.