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XRP/USD Technical Analysis: Cryptocurrency struggles to climb the bullish ladder as bear continues its rounds

Akash Anand

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XRP/USD Technical Analysis: Cryptocurrency struggles to climb the bullish ladder as bear continues its rounds
Source: Unsplash

The bear attack on the cryptocurrency market has intensified with several coins falling off the bullish ramp. Popular cryptocurrencies like Bitcoin [BTC] and XRP have all turned over to the bear’s side which has been marked by significant price drops.

1 hour:

The one-hour XRP chart shows the consistent price decline interspersed by slight bullish rises. The prices have undergone both an uptrend as well as a downtrend with the rise taking the price from $0.336 to $0.347 while the following downtrend saw the price drop from $0.368 to $0.352. The support has been holding at $0.342 while the resistance is at $0.402.

The Parabolic SAR has been predominantly bearish which is indicative of the bearish trend. This is shown by the markers staying above the price candles.

The Bollinger band, after holding a sizeable cloud, has started a convergence, a sign of the current trend ending.

The MACD indicator is holding below the histogram and has continued falling below after a bearish convergence. The MACD histogram has also displayed a bearish dip in prices.

1 day:

The one-day graph paints the picture of a sustained price movement pockmarked with a single uptrend followed by drops. The uptrend had increased the prices from $0.576 while the downtrend saw the prices fall to $0.357. The long-term support has been withstanding at $0.265.

The Relative Strength Index is holding very near the overbought zone after falling from the overbought zone. The hold near the oversold zone indicates that the selling pressure is more than the buying pressure.

The Chaikin Money Flow indicator has spiked below the zero line after being above it. The fall below the axis means that the money flowing out of the market is more than the inflow.



Conclusion

The crypto winter has not been kind to the cryptocurrency market with all the above-mentioned indicators taking the side of the bear. XRP, which has grabbed the headlines multiple times over the past few weeks developments, has still not been able to escape the acute price slide.





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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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