The cryptocurrency has largely been directionless over the past two weeks: assets from Bitcoin and Ethereum to XRP and Litecoin have been stuck in relatively tight price ranges, barely budging as a macro trend is failing to form.
Despite the non-action, a popular analyst recently claimed to have “solved the XRP price mystery,” releasing a TradingView post revealing in which direction the popular altcoin could take in the coming months. The analyst in question, who goes by Magic, is somewhat controversial due to his loud presence on Twitter, though he asserted that he thinks this recent analysis is very logical: “This may be one of the best and most insightful XRP analyses I’ve ever created. I think I have finally cracked the mystery of how [the cryptocurrency] will progress from here.”
XRP to Drop 20% Before Exploding Higher
According to Magic’s recent analysis, XRP is currently in the midst of an extending falling wedge pattern (normally deemed long-term bullish but short-term bearish). A falling wedge is marked by a tightening price range over time, and is normally concluded by a strong price breakout to the upside. The upper bound of the wedge has been touched by XRP three times over the past two years, while the lower bound of the wedge has been tapped by BTC some six times throughout history. On the importance of the trend lines that form the wedge. Magic wrote the following:
There were several occasions where price attempted to break out above that resistance. Just look at how price reacted to it. That level was severe overhead resistance, and when XRP finally got above it, faces were absolutely melted.
He went on to note that the one-day Moving Average Convergence Divergence (MACD) is bullish for XRP, with there being a massive bullish divergence that is forming, “showing us that the sell side pressure has been falling since mid 2018.” He added that there has been an accumulation pattern forming with the cryptocurrency, boding well for XRP’s price action in the coming months.
He thus concluded that the most likely path that the cryptocurrency is going to take in the coming days will be for it to fall 20% to $0.17, then bounce to the upside, breaking above the falling wedge to starting rocketing back to its previous all-time highs.