Strength Building on XRP Chart After Modest Gains
It’s no secret now that altcoins have been popping off, pulled up by Bitcoin’s (BTC) bullish moves, as well as declining Bitcoin dominance. XRP (XRP), however, has been one of the few majors to not see much positive price action since the rallies began, and is still stuck in a downtrend that has been in play (versus BTC) since October 2019. But signs of strength are there.
We start with a daily XRP/BTC chart, we see the curious case of rising RSI strength coupled with two very direct selloffs that have come already in the new year. It seems that XRP is being compressed under the EMAs, and above the 2600 satoshi mark. The histogram also has maintained its position on the positive side of the range, suggesting that maybe XRP is being accumulated here.
If we look at the huge weekly USD pairing, however, we see that XRP is still in a dire state in terms of long term trend. We see a downtrending price still trapped under the 21 EMA (with a fresh rejection in the current week), and RSI downtrending to match price.
Volume has been building a bit throughout 2019, although not much. The histogram here is, in fact, diverging bullish from price, although the EMAs are still very much inverted (bearish). XRP has a lot of work to put in here to return to an uptrend.
Finally, on the XRP/USD daily, we see some good signs – but must remember that most of these are inflationary effects of Bitcoin. XRP has engaged the critical resistance region starting at about $0.23, going up to about $0.25; and derived from summer support.
The 55 EMA has been taken and waits for a retest, but even holding above $0.20, at the most recent support, would constitute a higher low and preserve the beginning of a medium term uptrend.
Ultimately, XRP/USD will not look really enticing for trend traders until it has secured a position above $0.25. Even if things are looking interesting now, it is nowhere near that milestone. But volatility seems to be returning to the crypto markets, and perhaps XRP will get there sooner than expected.