Connect with us

Analysis

XRP/USD Technical Analysis: Ripple Swell investor sentiment may save price from bears

Anirudh VK

Published

on

XRP/USD Technical Analysis: Ripple Swell investor sentiment may save price from bulls
Source: Unsplash

XRP has been seeing a lot of exposure recently, owing to the upcoming Swell conference by Ripple. It also finished September with an 80% growth after the drops it underwent.

1 hour:
The $0.57 – $0.611 uptrend reversed soon after hitting the ceiling at $0.611. It corrected to $0.587, with the uptrend from $0.443 – $0.572 providing a solid support for the coin.

The RSI rescinded its position to the center of the indicator after recovering from an overbought signal. Buying pressure has eased and settled along with the selling pressure.

The Klinger Volume Oscillator is flashing a bearish sign, as evidenced by the short downtrend demonstrated by the oscillator. This could mean that a bearish run is coming unless momentum builds and switches volumes back.

4 hour:
The presence of an ascending triangle is observed, indicating accumulation below the $0.57 mark. The triangle is formed by the $0.611 level as the ceiling, with the uptrend from $0.271 – $0.573 forming the support. The 20-period WMA is at $0.576, providing a support for the next run.

The MACD, however, is diverging downwards. A bearish cross was also observed as the MA line moved below the signal. The histogram also points to further downwards movement.

The Awesome Oscillator is flashing red and is showing a bearish signal as seen by the double red lines in the indicator.

1 day:
The Chaikin Money Flow indicator is positive, and the buying pressure has not decreased since its recent bull run.

The AccumulatiOn Distribution indicator is demonstrating a sharp downtrend, usually perceived as a bearish sign.

The Parabolic SAR indicator is still demonstrating momentum, as seen by the presence of the indicator under the candlesticks.

However, there is a strong uptrend that might carry the momentum across, namely the rise from $0.326 – $0.574. Another slight long-term uptrend was seen from $0.507 – $0.574.

Conclusion:



As always, investor sentiment may end up saving the day for XRP by providing the momentum it requires to beat the current bearish prediction. If the coin breaks $0.57, upwards movement will see the $0.61 and $0.77 limits tested.

If sentiment does not prevail, one can expect the $0.45 and $0.32 levels to be tested.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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