XRP, the second largest altcoin in the market, has at the hands of its parent company Ripple, been vying to create a niche for itself. With the banking sector’s affair with the cryptocurrency going strong, the altcoin’s price, which began 2019 off in sluggish fashion, finally joined the party and despite weak performances off-late, the price is likely to soar.
However, according to a crypto-analyst, XRP may be in for a “2x” move shortly. Identifying what will be the second of a double bottom, the price looks to rebound from this touted “bottom” into a significant upswing.
In the analyst’s words,
“Double bottom, followed by an easy 2x. Soon /
It should be noted however, that the analysis here was conducted with Bitcoin as the base currency and the pair being XRP/BTC, rather than a fiat or stablecoin pair. With Bitcoin driving market growth since the beginning of April, and barring one isolated XRP swing, market tendencies have been firmly in favor of the king coin.
Stating that the second of the “double bottom” for XRP was in the range of 0.0004BTC, this zone was highlighted as the “buy zone.” The altcoin began rising out of this bottom during the previous month, as the collective market breached the $270 billion mark, prior to the recent pullback. This double bottom manifested itself last time in September 2018, post which XRP’s price skyrocketed, before being halted in November 2018, owing to the Bitcoin Cash hardfork bears.
If one were to go by the “2x” increase, the price of the altcoin, expressed in terms of Bitcoin, would rise by 0.000058BTC or by 133.26 percent. Hence, the price would be over the margin of 0.0001. The last time XRP reached this price range was during the close of the previous year, when it performed better than much of the overarching market, even overtaking Ethereum [ETH] for a period of time.
However, only a few trades made it over 0.001 BTC, whereas the rest were below the mark.
With XRP joining the likes of Bitcoin and Ethereum and breaking into its Golden Cross, good times are on the horizon for the cryptocurrency. The crossing of the 50-day MA over the 200-day MA came at the right time for the cryptocurrency as prior to the formation of the golden cross, XRP, together with its Bank Coin counterpart, Stellar Lumens [XLM], had dropped by over 12 percent in price against the USD since the beginning of 2019.
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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