XRP / BitcoinShort
XRP: Are Bears Still In Control?
X FORCE CRYPTO ANALYSIS
People are getting excited about XRP's potential mini bull run, as the Swell Conference is expected to act as a fundamental stimulant, driving XRP's price upwards. The X Force, however, is skeptical of such argument. Let's take a look at the technicals to assess XRP's situation. The chart on the left is the XRPUSD chart, the one on the right, XRPBTC.
XRPUSD
- We are currently in an ascending channel, which seems to be part of a potential bear flag pattern. This meas that XRP is currently trading in a narrow range making higher swings with pivot lows. This can be mistaken for newcomers to enter the market and be punished when bears take control.
- We have seen a huge bearish sell volume for the first leg down on the bear flag pattern, indicating that most people have sold at that candle. How to interpret this? Zoom out. The larger picture is what paints the larger bearish structure.
- The volume is extremely dry, indicating the lack of strength and momentum to drive prices upwards. This can be most indicated by the Bitcoin dominance, as we are still technically at a high dominance.
- We are however, seeing strong support at current levels, as the 100 Standard Moving Average (SMA), and the 1.236 Fibonacci support are converging together, where bulls might take another stab at driving price to the upside (probability is now getting lower with each leg up.).
XRPBTC
- We are seeing a textbook rising wedge pattern after a downtrend that lasted several weeks.
- We are also seeing a typical bearish divergence pattern, in which prices form higher highs, and the indicators - the relatives strength index (RSI) in this case - form lower highs
- The bearish divergence and decreasing volume indicate a lack in strength and momentum to fuel a potential breakout
- We do, however, have strong support as the 100 SMA and the 1.5 Fibonacci support have converged.
Market Sentiment:
Many people are extremely bullish on XRP as it has continued an uptrend for the past few days, along with a bullish event that will take place in Singapore soon.
Remember, any event or fundamental analysis should be applied for the longer period of time. 'Buying the hype, and selling the news' is a valuable lesson we have learned from 2017. The amplification of the news is not sound enough in terms of being clear evidence of this rise.
BTC dominance is something to consider as well. We are seeing Bitcoin dominance hover above 65%, indicating that people are still not interested enough for an alt season. This translates to people not buying alts. Volume and market cap is just not sufficient in terms of risk and reward.
What We Believe
Though the sentiment for XRP is more bullish than bearish, we believe that technicals demonstrate signs of bearishness, which is especially clearer on the BTC pair chart.
Trade Safe.
People are getting excited about XRP's potential mini bull run, as the Swell Conference is expected to act as a fundamental stimulant, driving XRP's price upwards. The X Force, however, is skeptical of such argument. Let's take a look at the technicals to assess XRP's situation. The chart on the left is the XRPUSD chart, the one on the right, XRPBTC.
XRPUSD
- We are currently in an ascending channel, which seems to be part of a potential bear flag pattern. This meas that XRP is currently trading in a narrow range making higher swings with pivot lows. This can be mistaken for newcomers to enter the market and be punished when bears take control.
- We have seen a huge bearish sell volume for the first leg down on the bear flag pattern, indicating that most people have sold at that candle. How to interpret this? Zoom out. The larger picture is what paints the larger bearish structure.
- The volume is extremely dry, indicating the lack of strength and momentum to drive prices upwards. This can be most indicated by the Bitcoin dominance, as we are still technically at a high dominance.
- We are however, seeing strong support at current levels, as the 100 Standard Moving Average (SMA), and the 1.236 Fibonacci support are converging together, where bulls might take another stab at driving price to the upside (probability is now getting lower with each leg up.).
XRPBTC
- We are seeing a textbook rising wedge pattern after a downtrend that lasted several weeks.
- We are also seeing a typical bearish divergence pattern, in which prices form higher highs, and the indicators - the relatives strength index (RSI) in this case - form lower highs
- The bearish divergence and decreasing volume indicate a lack in strength and momentum to fuel a potential breakout
- We do, however, have strong support as the 100 SMA and the 1.5 Fibonacci support have converged.
Market Sentiment:
Many people are extremely bullish on XRP as it has continued an uptrend for the past few days, along with a bullish event that will take place in Singapore soon.
Remember, any event or fundamental analysis should be applied for the longer period of time. 'Buying the hype, and selling the news' is a valuable lesson we have learned from 2017. The amplification of the news is not sound enough in terms of being clear evidence of this rise.
BTC dominance is something to consider as well. We are seeing Bitcoin dominance hover above 65%, indicating that people are still not interested enough for an alt season. This translates to people not buying alts. Volume and market cap is just not sufficient in terms of risk and reward.
What We Believe
Though the sentiment for XRP is more bullish than bearish, we believe that technicals demonstrate signs of bearishness, which is especially clearer on the BTC pair chart.
Trade Safe.
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📢 Twitter | twitter.com/XForceGlobal
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