At the moment, the crypto-market as a whole is in an unusual situation. With cryptocurrencies like Ethereum and Cardano, Bitcoin shows a high de-correlation. And, while most people's long-term bullish structures are still intact, there appears to be fear in the wake of Bitcoin's recent drop below $60,380.
However, the trend for XRP appears to be pointing to an exciting couple of weeks ahead. Particularly given the possibility of a new all-time high.
Bitcoin zealots may now criticize the article. But, because this isn't your coin, why should you be concerned?
XRP – a powerful daily and weekly game?
We addressed XRP's consolidation within the symmetrical triangle pattern in a recent piece, with the narrative pointing to a bullish breakout. On the 27th of October, however, the escape was southward.
However, at the time of writing, the decline may be considered as only a blip on the radar, as XRP quickly recovered and surged beyond $1.10 within a week. Within three days, the daily candle closed above the Exponential Moving Average-20, or EMA-20, signaling strong bullish momentum.
The weekly chart for XRP now maps out precisely in light of the aforementioned structure.
The path of a trend is generally determined by fractal shapes over a longer duration, and XRP's recent patterns have been enticing. In Q1 2021 and Q4 2021, the weekly chart for XRP showed a similar local top, local bottom, and positive symmetrical triangle breakout, as seen above.
The explosive returns were the only section of the continuation chart that was missing. In April 2021, this pushed XRP to $2. A similar scenario would easily propel XRP beyond $3, with a possible high of $4 in the coming weeks. The absence of social volumes might now be used as a counter-argument to the $4-summit. XRP received a lot of attention in the first quarter of 2021. However, the same isn't readily apparent at the present.
As shown in the graph below, social volumes haven't been very high. This might suggest a lack of retail interest or public excitement in general. On-chain activity, on the other hand, is nothing to be concerned about. A week ago, a big bullish divergence was seen between growing active addresses and falling prices. The recent price increase is now being seen as a fundamental driver.
Increased daily active addresses indicate increased participation. This implies that XRP is attracting the attention of its users.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.