Ripple (XRP) is about to breakout beyond its level of resistance after weeks of a downward trend. This has affected price performance as XRP has been having selloff pressures resulting in a downward triangle. This has been ongoing from the 24th November 2018- when the Bitcoin Cash hard fork wars plunged the market into a bear cycle.
Downward Pressures Are Still Dominant
The descending triangle indicates that XRP prices are still heading downward for the time being. However, this may not be the case long as the conditions for a breakout culminating into a bull run are starting to manifest. In fact, if the XRP price plunges further and more drastically, the outlook would still be the same as a correction is about to take place.
The Case For A Breakout
The confidence of the assumption is underpinned by the fact XRP/USD pair has been consolidating above its key support level that is yet to be broken. This means that the level of support is about to reset itself to a higher level above which XRP would start a bull cycle in the foreseeable future.
This assumption is further reinforced by the Stochastic Momentum Indicator done on a weekly chart that shows that the price is set for a major breakout in weeks’ time. The indicator shows that XRP could surge beyond $0.50 and maintain the upward momentum for the better part of 2019.
The Level Of Support Is At $0.28
The level of support that XRP has been consolidating at for the past few weeks is $0.28. This has been fairly consistent save for the past 24 hours of trading where the price shed 0.94% to stand at $0.29. Still, it is unlikely that the downward trend could continue as other major Cryptocurrencies such as BTC, ETH, BCH, LTC, USDT, and others are in the green and their momentum has been historically known to change market cycles.
Nonetheless, should the unforeseen events occur and the price falls below the level of support, the price could take an unknown time to recover. Only major occurrences such as the integration of xRapid service by Euro Exim Bank, or the Middle East Ripple deals could change the tide. However, the probability of a further slide is very low and investors can only anticipate an easing bear trend ahead of the bull cycle.
Ripple’s XRP Is The World’s Largest Altcoin
Brad Garlinghouse’s strategy of marketing Ripple to mainstream financial platforms such as Santander, Bank of America, City Group. Goldman Sachs, etc. is paying off as the number of RippleNet adoption is increasing exponentially. This is consequentially attracting Crypto market’s interest to XRP and easing the sell-off pressures as demand increases. For this reason, XRP is one of the most attractive investment and is now the largest Altcoin.
Other external factors such as policy change by the US SEC, public awareness of Cryptos, better wallet security, Cryptocurrencies’ support by financial institutions, and other factors will also contribute to the breakout.