Many altcoins, especially midcaps it seems, have in the past two weeks been seeing healthy gains after trying to find their respective bottoms. One of the biggest altcoins, XRP -- definitely not a midcap -- has joined them in a more modest fashion, chalking up over 40% in past weeks. Here, we whether or not this notable crypto can maintain upward momentum and keep up with the midcaps.
First, we review a weekly XRP/BTC chart to recall the general situation. XRP has bounced solidly off of an important support band, but there is no guarantee that it will stay up here. This has all come after a capitulation through the 4,100 satoshi area, which had not been broken since late 2017.
Coming down to the daily, we see a mixed picture. At first, the formation looks like a rising wedge, a bearish formation; but on closer inspection it is more likely to be a leading diagonal, which signals the start of an uptrend.
Volume here has been falling on the pushes, which is not completely encouraging (Binance exchange). Histogram strength has also been falling on the price peaks, but RSI, the holdout here, has not been diverging bearishly from price. RSI is lingering near overbought areas, but is not currently (strictly) overbought.
Finally, moving to the XRP/USD daily, we note that a very important inflection zone is located between $0.28-29. XRP has managed to break through this area, again, for the second time in a month -- the first time it did, it was kicked back down by Bitcoin’s untimely breakdown from a major consolidation.
The indicators look okay, although the histogram has taken a major turn after looking strong yesterday. Again, volume is waning even here. The major test for XRP on the USD chart is simply staying above this level; if it can do that for any length of time, it will likely gather more buy support for another leg up.
For XRP, as for many midcap altcoins, a well-earned uptrend hangs in the balance.
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