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

After Monster Rally, Dogecoin (DOGE) Pushing Multi-Year Resistance

Colin Muller

Dogecoin (DOGE), beloved of crypto traders old and new, has repeated its classic move and shot up as much as 140% in the past two days. With this move, it is pushing on a multi-year resistance zone. If that were to break, we would see something truly interesting.

We can see this on the weekly DOGE/Bitcoin chart, from the (once-mighty) Poloniex exchange. This trending zone has been respected since June 2017, which many consider the first great “alt season”.

Watch this closelyDOGE chart by TradingView

The two key levels here are ₿0.00000038 (38 sats) and 79 sats, which make up the block of the resistance area on the weekly chart. This poses a very clear criterion for us to be aware of: the weekly has not closed within this zone in three-plus years; and come Monday, if it is above 38-ish sats, DOGE will be looking interesting still.

Moving to the daily DOGE/USDT chart, we see a similar, if less slanted situation. If the rocket 140% move is to make any inroads into a  new price structure, it will have to hold on a retest at about $0.0033.

A new market structure?DOGE chart by TradingView

That doesn’t look like it should be too difficult, and we could instead see a hold somewhere much more impressive like $0.0045 and above.

At any rate, we need to watch that DOGE/Bitcoin weekly chart. Breaking resistance seems too hard to believe; but we could well see DOGE/USDT continue up – and this would imply a leg up for Bitcoin. Thus, DOGE/Bitcoin may tell us just as much about the broader crypto market as it does about Dogecoin itself.

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