As one of the most “rekt” major altcoins during BTC’s 2019 bull run, XRP has had major trouble finding a bottom on the XRP/BTC pairing, after its seemingly never-ending retrace to historic lows. A recent bounce, providing some relief, now seems to be over – and the task of bottom-finding resumes.
Looking first at the monthly chart, we see that an astonishing seven full months of selling are painted. Price has landed in historical support, and the sell volume seems to at least be abating; a sign perhaps that the market’s sellers have been thinned out.
Moving on to the weekly, we see that RSI has diverged significantly from price over the last couple of months. This is a good sign, and has given XRP traders a nice bounce to work with (see below). Histogram has also been diverging favorably.
On the daily, we see some more interesting events. What looked like a hopeful trade setup, an ascending triangle, seems to have completely fizzled on a lack of volume. The histogram is now arcing down, and we could well see XRP retest the previous bottom or even set a lower one within the blue band.
Looking at the RSI here, though, we might expect – or at least hope for – any dip to be caught at the uptrend line that preceded the buildup. A bull divergence between previous price lows is still a good sign, even if XRP is not able at present to effect a more impressive rally.
Finally, looking much closer at the 4-hour chart, we see few signs of short term strength after the failed breakout. The RSI is still trending down and showing no strength, and another leg down seems likely.
On the histogram, the bars are barely able to remain flat, and there is only the faintest beginning of an arc up (although it is there). Something like this may be good for a scalp trade of oversold conditions – but experts only need apply. Swing traders should move along.
All in all, on the higher timeframe, XRP/BTC may well have found a bottom. A nice double bottom with growing indicator strength seems quite possible in the coming weeks. As for the short term, the failed breakout looks have at least a little downside left to go.
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