XRP: Tale of Two Charts: Medium Term Price Analysis

XRP (XRP), like other leading altcoins, is easily throttled by Bitcoin’s (BTC) price movements. And like other altcoins, XRP’s USD price can stay flat or rise even as it is rapidly sold off for bitcoin. This is the situation XRP is currently in.

XRP’s two charts - XRP/BTC and XRP/USD(T) - could not really be more different. One looks about to breakout strong to the upside, the other looks ready to find new lows.

We can start with the bad news. As we can see on this huge weekly XRP/BTC chart, XRP is nearing the bottom of a critical area of historical support. This level has held since December of 2017, after being tested once significantly last year. A full 65% of loss lies below the current price and the next support, versus BTC.

XRP/BTC has a long way down(source: TradingView.com)

If we zoom in to the daily XRP/BTC, we see the makings of a double bottom - not unlike many altcoins’ charts. But the second bottom is still in a state of flux, and has not been confirmed. If Bitcoin again decides to break to the upside for another run, this level could easily break. But, if a second bottom is found, we have cause for optimism because of the bullish diverging RSI strength that would be found.

is this the bottom?(source: TradingView.com)

On the XRP/USD side, however, things are looking much less dire somehow. Looking at the daily chart, we see that a June 22 breakout propelled price above the local $0.45 resistance line of an ascending triangle formation, and into tougher historical resistance at $0.50. The retest at $0.45 held, and RSI strength is holding an uptrend.

almost a breakout on xrp/usd(source: TradingView.com)

This chart does not look bad, although it is still at the dangerous point where the next leg up has not really confirmed a breakout. Volume on Bitfinex was nothing stellar, but there is promise.

An obvious addition to our thinking is that June 22 was the day Bitcoin broke $10,000. So in large part, XRP/USD’s breakout was entirely attributable to the inflation effect of Bitcoin on all altcoins. On the XRP/BTC chart, it is do-or-die time; whereas on the USD chart (below, daily), there is some breathing room.

xrp/usd failing here would not be the end of the world(source: TradingView.com)

Ultimately, it is hard to get much reading from the charts. But we can say that XRP’s USD price is not rising as much from an internal strength, as it is from Bitcoin’s effect on the market. Again, as so many times before, Bitcoin’s direction holds the markets in thrall.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.