XRP Poised to See More Gains?
The crypto market has seen its craziest day in months. As Bitcoin (BTC) price flatlined, steadying at $10,250, altcoins absolutely skyrocketed.
As seen in the chart from Coin360 below, cryptocurrencies, save for Bitcoin and a few other stragglers, effectively went vertical, showing a bout of strength on a caliber that was reminiscent of 2017’s bull run. Ethereum gained 7%, passing above key resistances to hit $212; and XRP topped the key $0.30 price point, posting a 16% gain on Tuesday. Crazy, right?
While traders’ attention was scattered, with everyone focusing on different opportunities, many eyes fell on XRP, the Ripple-backed cryptocurrency that has been under a barrage of controversy over recent months. What’s interesting is that despite this controversy, many analysts on Crypto Twitter are eying more price gains for the digital asset.
Prominent analyst Jacob Canfield recently pointed out that the XRP/BTC chart recently printed a very strong buy signal. This, as his points out, is a crossover of the three-day Relative Strength Index (RSI) reading from an oversold to the overbought territory — or from below to above 40, to be more specific. The last time this signal was seen, XRP/BTC saw massive surges, the smallest of which being 60% and the biggest of which entering the hundreds of percent region.
That’s not all, Canfield went on to point out that XRP against Bitcoin recently bounced off a key historical Fibonacci Retracement level, a level when held should result in the cryptocurrency surging higher.
Controversy Doesn’t Faze Bulls
This strong price action comes in spite of controversies, as mentioned previously.
You see, a Bloomberg article earlier this year suggested that XRP’s collapse has much to do with Ripple itself and its founders cashing out their tokens.
McCaleb is reported by CoinMetrics to be selling 500,000 XRP each and every day, while Ripple itself has been participating in tens of millions of dollars worth of sales to cover expenses and build up its balance sheet. Kyle Samani, the co-founder of Multicoin Capital, said:
The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure… Savvy investors have known this for some time; however, for whatever reason the market is just now picking up the narrative and reacting.
These sales don’t seem to have hurt XRP on Tuesday, however. That’s for sure.
Title Image Courtesy of Marco Verch Via Flickr