XRP Holds Up Against Bitcoin Drop – Price Analysis

  • Short term trend: Likely relief bounce soon (probably with Bitcoin)
  • Long term trend: Likely downtrending consolidation

While Bitcoin (BTC) has taken a steep turn to the downside and settled into a downtrend, high-cap altcoin XRP (XRP) has naturally been pulled down with it. However, the XRP/BTC chart tells us that XRP is actually not doing that bad – and certainly could be doing worse.

To illustrate this trend, we look at the XRP/BTC daily chart, with ETH/BTC for comparison. We can clearly see that, when Bitcoin really began to tumble about a week ago, ETH/BTC tumbled right with it – amplifying its losses versus fiat pairings like USD.

Definitely holding up better than ETHXRP chart by TradingView

Instead, XRP/BTC has had an inverse direction from Bitcoin (and Ethereum) during this time, heading up as Bitcoin heads down. In general, XRP continues to show support around 3,000 satoshis, directly within the “golden pocket” area of the Fibonacci retracement range.

However, looking at a more typical chart, we see that XRP/BTC is perhaps retesting this region a bit too much. The EMAs are gathered together in a knot just at the current price, and it seems like an important moment has arrived for recent XRP price history. Closing below this knot of EMAs would not be good – although the aggressive defense wick that has already come through today could give bulls confidence that this level will be defended.

Could lose the EMAsXRP chart by TradingView

The histogram seems to be arching down at time of writing. The generally falling volume indicates some kind of consolidation, and we can look forward to a larger move when this volume profile tapers off even more.

If we look at the XRP/USD pairing, however, we see less to be excited about on this 3-day chart. XRP has obviously slid with Bitcoin, as has almost every cryptoasset. Holding up well to Bitcoin on the XRP/BTC chart can only translate so well to the XRP/USD chart, and XRP has lost an important local support area ending at about $.25.

Six red candles, but kind of downtrend-yXRP chart by TradingView

On the RSI, we see no chance of a higher low to form a divergence. On the histogram, we see a flat trajectory trending down – which is at least better than an accelerating arch down. But with six red candles already painted on this medium timeframe chart, we can probably expect the present support box to hold for at least a while, and a relief rally of some magnitude.

In sum, we can see that XRP is doing far less bad than some other high cap altcoins. As Bitcoin heads south into 2020, dragging everything with it, that might seem like cold comfort; but it’s better than no comfort at all.

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

Featured Image Credit: Photo via Pixabay.com

Binance Raises Eyebrows After Confirming Coinmarketcap Acquisition

Binance Holdings Ltd., the firm behind leading cryptocurrency exchange Binance, has confirmed the acquisition of cryptoasset tracking platform CoinMarketCap.

In a blog post, Binance confirmed the acquisition and claimed CoinMaketCap “stays committed” to providing quality cryptocurrency data to its users “while benefiting from Binance’s expertise, resources and scale.” It added CoinMarketCap has “maintained independence from external stakeholders since its inception” and will keep being an independent business entity.

In the post, Binance CEO Changpeng Zhao was quoted as saying CoinMarketCap is the “landing page of crypto.” The acquisition was first reported on by TheBlock, which wrote the platform could be changing hands for as much as $400 million in cash and stock.

While Binance’s BNB token and the Binance exchange are listed on the platform, the post responded to users’ concerns surrounding the acquisition writing:

CoinMarketCap and Binance are separate entities that maintain a strict policy of independence from one another: Binance has no bearing on CoinMarketCap rankings, while CoinMarketCap has no influence over Binance’s operations.

As CryptoGlobe reported, users expressed concern surrounding CoinMarketCap’s data after the acquisition was first reported, as managing the platform could be very beneficial for Binance, which could use it as a funnel to gain new users.

Speaking to Bloomberg News Nic Carter, co-founder of Coin Metrics, noted that Binance could also set its platform as the preferred exchange by topping the rankings by default.  Carter added:

While the move may cause some to question CMC’s [CoinMarketCap’s] ability to remain a neutral data provider, it could potentially be very productive for Binance.

Binance’s blog post details CoinMarketCap’s founder Brandon Chez is stepping down as CEO to focus on his family, while current Chief Strategy Officer Carylyne Chain has been named interim CEO.

The cryptocurrency exchange recently raised users’ ire after participating in what was dubbed a hostile takeover of the STEEM blockchain, later on removing the vote. CoinMarketCap’s data itself has also been heavily criticized, with one filing with the Securities and Exchange Commission from Bitwise Asset Management arguing 95% of the trading volume it reports is fake or non-economical in nature.

Cryptocurrency exchanges have been known to use schemes that help boost their trading volumes – in some cases allegedly going as far as wash trading – to boost their rankings on CoinMarketCap and gain visibility.

Addressing the issue Zhao noted it wasn’t an easy problem to fix, adding that almost everything “requires some kind of judgement or algorithm.” While the acquisition comes at a time in which the economy has been suffering because of the COVID-19 outbreak.

Market volatility has, however, been good for crypto exchanges. Zhao revealed Binance’s traffic increased about five times over the past few weeks, while Coinbase had already revealed its volumes grew after the March 12-13 market crash.

Featured image by David McBee from Pexels