XRP has been consolidating for the past several days and weeks, trading within a relatively tight trading range in the mid-to-upper $0.20 region. It is important to note that analysts still believe that XRP’s bears are in control, despite its multiple bullish attempts to break out of its trading range over the past week.
It is also important to note that a historical catalyst for significant gains is fast approaching, which could mean that XRP will soon surge significantly higher before once again dropping back to its recent lows.
Ripple’s Swell Event May Lead XRP to Surge, But Gains May be Fleeting
It is important to note that XRP is currently trading just a hair above its 2018 lows, and unlike most other major altcoins, it was unable to post any noteworthy gains throughout the first half of 2019.
The embattled cryptocurrency may be able to post some decent gains in the coming couple of weeks, however, as Ripple’s annual Swell event is just a few weeks away, which usually is closely correlated with an XRP pump.
Galaxy, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that history elucidates that the crypto may post massive gains before the event, and then subsequently retrace following the event.
“The trade of the year is coming once again on $XRP. Long 2 weeks before Swell, and short when the event is over. Price increase before event (USD) +115% (2017) +220% (2018). Price decrease after event (USD) -43% (2017) -51% (2018). Time to see what this year brings,” he said while pointing to the below chart.
The trade of the year is coming once again on $XRP.
Long 2 weeks before Swell, and short when the event is over.
Price increase before event (USD)
Price decrease after event (USD)
Time to see what this year brings. pic.twitter.com/bW9qKUGv8Y
— Galaxy (@galaxyBTC) October 13, 2019
Despite this bullish near-term sentiment, Big Cheds, another popular crypto analyst on Twitter, recently said that its inability to post a higher low and to break above its downtrend resistance line could spell trouble for how it trades in the near-future.
“$XRP (USD) #Ripple – approaching short term downtrend line resistance on daily chart, however still unable to establish a higher low,” he said while pointing to the collection of charts seen below.
— Big Cheds (@BigCheds) October 13, 2019
Only time will tell as to whether or not Swell will lead XRP to surge higher, but it is certainly a historically bullish catalyst that investors should closely watch.