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XRP/USD Technical Analysis: Coin burns in the fire started by the bear

Namrata Shukla

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XRP/USD Technical Analysis: Coin burns in the fire started by the bear
Source: Pixabay

The second-largest coin on CoinMarketCap, XRP has been seeing significant growth since January 14 and is still going steady. The coin underwent a sudden price hike on January 14, however, it did not last for long.

At the time of press, XRP was valued at $0.3305, with a market cap of $13.5 billion. The coin registered a 24-hour trading volume of $474 million with a mere fall of 0.68% within the past hour. The coin has been performing poorly as reflected by its seven days dip of 9.11%.

1-hour

Source: Trading view

Source: Trading view

According to the one-hour chart of the coin, the coin registered massive downtrend from $0.3860 to $0.3422. The coin registered an uptrend from $0.3367 to $0.3263 with resistance marked at $0.3429 and support marked at $0.3206.

Bollinger Bands are at a converging point, reducing the market volatility. The moving average line of the coin appears to be over the sticks, pointing towards a bearish market.

Awesome Oscillator also indicates a bearish market losing momentum.

Chaikin Money Flow has just dipped under the zero mark, indicating a bearish trend.

1-day

Source: Trading view

Source: Trading view

The one-day chart of the coin suggests an uptrend from $0.3467 to $0.5639, after which it fell from $.0.4928 to $0.3826 till $0.3116. The coin gradually went up from $0.2931 to $0.3206 and is going through constant ups and downs since. The coin registered resistance at $0.4141 and support at $0.2905.

MACD line is under the signal line, marking a bearish market. However, the MACD line might crossover the signal line anytime soon.

Parabolic SAR indicates a bearish market as the markers have aligned themselves above the candlesticks.

Relative Strength Index indicates the buying and selling pressures are evening each other out.



Conclusion

All the indicators together predict a bearish run for XRP. The coin must be the second largest but is still in competition with Ethereum [ETH, which is right under its nose and might overtake any moment, especially when it’s pumping.





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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
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.





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