Connect with us

Analysis

XRP/USD Technical Analysis: Bear market pulls down token; no respite in sight

Avatar

Published

on

XRP/USD Technical Analysis: Bear market pulls down token; no respite in sight
Source: Unsplash

XRP, the second-largest cryptocurrency by market cap, has not been spared by the bear market as the prices of XRP are desperately trying to stay above the $0.30 line.

The market cap for XRP is holding at $12.152 billion, and the 24-hour trade volume is at $290.01 million. Most of the volume for XRP is coming from Japanese exchange Bitbank via trading pair XRP/JPY, which contributes $30.78 million of the total trading volume.

1-hour

Source: TradingView

XRP prices, as seen in the chart, show a rather sad state that most of the cryptocurrencies are in. The uptrend has long been lost in the history of bull runs, while the downtrend extends from $0.4394 to $0.3021. The prices are holding the support at $0.2940 steady, with resistance points seen hanging at $0.4040 and $0.4270.

The Bollinger Bands indicate a bearish outlook for XRP in the one-hour chart as the prices are hanging below the simple moving average. The bands are contracting, which indicates that the volatility has reduced.

The MACD indicator is also depicting a bearish presence for XRP markets as the lines have fallen below the zero-line in a bearish crossover.

The  Relative Strength Index is trying to stop free-falling but has been setting up lower lows instead.

1-day

Source: TradingView

The one-day chart also looks as bleak as the one-hour chart as there is no uptrend to be seen. The downtrend, however, extends from $0.9027 to $0.3119. The support for the one-day chart is seen at $0.2627, while resistance lines can be seen at $0.5821 to $0.6899.

The Parabolic SAR markers are seen materializing above the price candles, which indicates a bearish pressure to the price candles.

The Awesome Oscillator shows a transition of red lines into green, which means that the prices are increasing, but the lines are present below the zero-line in a big-picture point of view, which means that the signal is still bearish.

The Aroon indicator shows the Aroon downtrend is seen bouncing at 100-line, which means that the downtrend for XRP has overpowered the uptrend, and that is an overall bearish sign for XRP.



Conclusion

The one-hour chart for XRP  shows that the bears are in control of the market, which is, in turn, depicted by the indicators MACD, Stochastic, and the RSI. The one-day time frame also shows massive bearish signs as indicated by the SAR, Awesome Oscillator, and Aroon indicators.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

News

Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

Avatar

Published

on

Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending