Altcoins have taken a thrashing against Bitcoin (BTC) for about two months, and XRP (XRP) perhaps worse than others. Even despite seemingly bullish news of late, the fast-transfering crypto has performed only modestly versus USD – and on its BTC pairing is essentially in freefall.
We take a look here at where it might land.
First, looking at a general long timeframe XRP/USD chart, we see that XRP has lagged other major altcoins. While some other majors are double or triple in USD price versus the start of 2019, XRP has barely doubled at most and at present only up about 50% from bear market lows.
To explain this performance, we shall refer to the XRP/BTC pairing.
XRP has in recent months broken two important support levels which many were closely eyeing to hold; one in early April when Bitcoin really got started on its bull run, and the other recently in late June. These breaks are pictured below.
The most recent support break, at around 4,000 satoshis, kicked XRP down into pre-2018 territory where it currently languishes. So we need to go very far back.
The above chart, from well into 2017, makes up our entire relevant market structure. Only here can we map out possible support levels which could catch XRP’s fall.
We are now right on the cusp of entering this subterranean support zone. If Bitcoin runs again – and it might – it is quite possible that XRP could sell off even further against BTC and enter these red bands for the first time in over a year.
The full range of this band of support – which is more than likely to hold XRP at some point – is about 54% worth of decline down. But the thicker portion of this red support band, where more history lies on the other side of the chart, starts only about 15% lower. This knot of price history is pictured below
One thing we can note from the daily chart is the decent amount of strength showing up on the RSI, bullishly diverging from the still-falling price. Indeed, for some traders, XRP will soon look like an irresistible buy.
But, this is strictly knife-catching. All the averages are pointing down. No suggestion of a bottom has been found. This is more the time for averaging-in, than for high-stakes trading. Those who like XRP’s fundamentals could – and maybe should – be filling their bags.
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