Ripple (XRP) is closer than ever to its biggest breakout in months. The daily chart for XRP/USD shows the price trading close to the trend line resistance having already tested it today. Ripple (XRP) started the day by shooting off against Bitcoin (BTC) but was soon stopped at the trend line resistance and is now consolidating before its next big move. The price will have to break out of this triangle in the weeks ahead. This relatively small triangle seen on the chart extends to the beginning of 2019 but Ripple (XRP) is due for its biggest breakout since the beginning of 2018 against Bitcoin (BTC). While the cryptocurrency may still go down some more in case of a decline in the cryptocurrency market, it is quite clear that Ripple (XRP) is poised to outperform Bitcoin (BTC) during the next cycle.
The mainstream media could not be any harder on Ripple (XRP) than it is now. News outlets are bashing Ripple (XRP) for its poor performance while key industry leaders are still busy calling it a sh*tcoin on Crypto Twitter. This certainly does not help and as we have seen the bulls have been reluctant to pick the cryptocurrency despite it being heavily oversold against both Bitcoin (BTC) and the US Dollar (USD). If we were to examine where it all went wrong for Ripple (XRP), even if this is all temporary, the JPM Coin announcement is the best place to start. Soon after the announcement, we saw a sharp decline in the bullish interest in Ripple (XRP). A few months prior to that, Ripple (XRP) was extremely bullish even when the market was bleeding, but after the announcement, the cryptocurrency could not even keep up with the rest of the market.
Ripple (XRP) has plenty of room to rally against the US Dollar (USD) but that does not even come close to how much it could rally against Bitcoin (BTC) in the weeks and months ahead. The weekly chart for XRP/BTC shows that Ripple (XRP) is massively oversold against Bitcoin (BTC) and has been on a steady decline since the beginning of the year. More importantly, XRP/BTC has yet to break out of the symmetrical triangle or bullish pennant that extends back to December, 2017. This breakout could be a game change for Ripple (XRP) and could see it rally aggressively in the weeks and months ahead.
Throughout the bear market, we have seen Ripple (XRP) make its own independent moves even when Bitcoin (BTC) and the rest of the cryptocurrency market have been in a decline. It would thus not be surprising to see the same happen again. Ripple (XRP) has already begun the day in green against Bitcoin (BTC) and appears likely to continue to rally against it in the weeks to come. This is truly one of the best times to go long on Ripple (XRP) and that is not just of Ripple (XRP)’s own fundamentals. The position in which XRP/BTC is at the moment makes it a good hedge against Bitcoin (BTC) both short term as well as long term.
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