Analyst: 680-Day Bear Trend For XRP is Over, Making an Epic Rally Likely
XRP, the native crypto token of the Ripple protocol, was one of the worst-performing altcoins of the last year due to a powerful bear trend the asset just couldn’t break free from.
But that 680-day bear trend was just broken, suggesting that a ripple-effect could trigger an epic recovery rally in XRP in the days ahead.
XRP Breaks Out of 680-Day Bear Trend, Claims 200-Day EMA
Few altcoins have suffered as badly as XRP. After an over 90% drawdown from all-time high prices, the cryptocurrency was stuck in a long, arduous downtrend.
At each glimmer of hope and recovery, the altcoin’s price was swatted back down by a combination of bearish investors and Ripple executives dumping on the market to fund operations.
Related Reading | Huge XRP Rally Triggers Key Indicator to Light Up For First Time in a Year
The cryptocurrency token has fallen from prices of well over $3.50 to as low as 17 cents per token at its December 2019 low.
From that low, however, XRPis already up a total of 93%. Year-to-date, Ripple is already up well over 80%. In February alone, XRP has increased by over 40%.
But with such explosive gains already ready for traders to book, could the rally really go much further?
Ripple Breakout Could Take Prices to New All-Time High
A breakout from a 680-day bear trend could provide the fuel to take XRP prices much higher.
The breakout of the bearish trend also is accompanied by a breach of the 200-day exponential moving average.
The number three cryptocurrency by market cap is also above the cloud or “Kumo” on the Ichimoku indicator – an indicator designed to provide a full “at-a-glance” look at an asset’s health.
As for how far XRP could fly, its anyone’s guess. However, past data shows that XRP could rally as much as 6,000% in the coming months, and reach prices of as much as $14 per token if a similar move occurs.
After the last major downtrend breakout, Ripple rallied from just pennies to well over $3.50 at the crypto bubble peak in early 2018. The powerful move shocked investors and got the world talking about the cryptocurrency.
Related Reading | Ready For Liftoff: Two-Year Downtrend Breakout Could Lead to $14 XRP
Since then, XRP was one of the worst-performing crypto assets two years running. But those woes could all soon reverse, and Ripple could recover much of the value it lost on the way down, in very little time, if the asset behaves as it has in the past.
With so much pressure built up below resistance, a further breakout in XRP could cause the asset to skyrocket. And at that point, extreme FOMO will kick in and carry prices even further – potentially to a new all-time high of $14 in the months ahead.
Featured image from Shutterstock
Analyst: 680-Day Bear Trend For XRP is Over, Making an Epic Rally Likely was last modified: February 14th, 2020 by Tony Spilotro
I’m Tony Spilotro. I’m an avid Bitcoin supporter and maximalist due to my distrust in society and concerns over privacy, but also a strong believer that XRP could end up being the most disruptive altcoin on the market. I’m an…
Source: Read Full Article