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XRP/USD Technical Analysis: Bear’s wrath spreads like wildfire as cryptocurrency loses ground

Akash Anand

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XRP/USD Technical Analysis: Bear's wrath spreads like wildfire as cryptocurrency loses ground
Source: Unsplash

XRP has had a very active week in the cryptocurrency space, with Ripple’s product announcing the commencement of multiple partnerships as well as giving an overall outlook of the past year.

The beginning of twenty nineteen has seen the second-largest cryptocurrency enjoy bullish highs as well as succumb to the pressure of the bear. This attribute has also been shared by several of the top honchos on the cryptocurrency charts, including Bitcoin [BTC] and Ethereum [ETH].

1-hour

The one-hour chart for XRP shows a cryptocurrency trying to recover from the bearish trudge and continuing a sideways price movement. The cryptocurrency immediate support has fallen to $0.32, while the immediate resistance is holding at $0.388. The recent downtrend brought XRP’s price down from $0.386 to $0.33.

The Chaikin Money Flow indicator is at its lowest point in ten days. The hold below the zero-line indicates that the capital leaving the market is more than the capital coming into the market.

The Relative Strength Index has spiked towards the overbought zone after crashing below the oversold zone. The rally up is proof that the buying pressure is more than the selling pressure in the market right now.

1-day

XRP’s one-day chart is indicative of the cryptocurrency succumbing to the pressure of the bear. The presence of the downtrend has affected the price of the cryptocurrency, at the same time protecting its long-term support. The long-term support is at $0.264, while the downtrend’s range is between $0.515 and $0.301.

The Bollinger band shows a slight divergence between the upper band and the lower band, an indication of an immediate price breakout and trend change. As of now, the cryptocurrency has come under attack by the bear as shown by the price candles falling below the lower band.

The MACD indicator clearly displays the sideways trend of the cryptocurrency. The MACD line and the signal line have both taken a downward turn moving as a conjoined pair. The MACD histogram is a sporadic mic of bearish and bullish signals.



Conclusion

The cryptocurrency market’s bearish trend looks likely to continue as shown by the above-mentioned indicators. XRP’s performance has been hampered by the intervention of the bull but fans of the cryptocurrency can draw some solace from the fact that Bitcoin [BTC], the world’s largest cryptocurrency has suffered bigger losses.





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

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





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