If you’ve been following the crypto markets, you know Bitcoin isn’t doing too hot. But Ripple’s XRP, not to mention other altcoins, has been showing some strength amid the leading cryptocurrency’s recent downturn. As of the time of penning this piece, XRP is up 2.34% against the U.S. dollar in the past 24 hours, and up 1.89% against BTC in the same time frame.
While this isn’t much in and of itself, bullish momentum for the cryptocurrency is still building, according to some analysts anyway.
XRP to Rally Into Swell
Late last month, Luke Martin, a cryptocurrency trader that was recently featured on CNN, pointed out that the XRP/BTC chart was establishing a bullish rounded bottom pattern. While some laughed off his optimism, his call was right.
Since his original tweet outlining the rounded bottom, the cryptocurrency has surged by upwards of 20%, pushing higher as Bitcoin has wallowed in a seeming redux of 2018’s bear market.
The bulls are not done yet though, Martin recently explained. In the tweet below, he noted that he expects for XRP/BTC to hit 4,000 satoshis (0.00004) — around 8% higher than current prices — as we head into Ripple’s SWELL conference.
The $XRP run into SWELL continues.
14 days until the conference and my outlook remains that we see the full 30% to 4000 sats.
Anything past that would be bonus. pic.twitter.com/wK8ZSjYSRO
— Luke Martin (@VentureCoinist) October 24, 2019
Luke Martin isn’t the only one expecting for SWELL Conference to be a boon for XRP, especially considering the role the cryptocurrency plays in the main theme of the conference, Ripple.
Popular analyst GalaxyBTC noted that prior to the 2017 and 2018 iterations of Swell, XRP rallied by 115% and 220% (against the U.S. dollar), respectively. If history is of any indication, the asset will continue to gain traction both against the dollar and against BTC in the weeks to come.
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. pic.twitter.com/bW9qKUGv8Y
— Galaxy (@galaxyBTC) October 13, 2019
What’s important to point out with this pattern, which notably only has a sample size of two, is that following the event, XRP has sold off both times, falling by around 50% both times. Ouch.
Consider yourself warned…
There is evidence, however, to suggest that altcoins will soon boom as Bitcoin continues to suffer. Per previous reports from Ethereum World News, Josh McGruff, another popular cryptocurrency analyst on Twitter, explained that he believes Bitcoin’s dominance over the aggregated crypto market will soon take a dive:
“If $BTC Dominance breaks this level, I see it dropping to the next level around 60% which would fuel alts. A lot of alts are showing signs of bottoming out and live coming into them,” he explained while referencing a chart.
Photo by Luisa Denu on Unsplash