HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Why XRP’s Waning Momentum May Be The Calm Before The Storm Surge

Altcoins 2020/08/06 22:00 by Tony Spilotro

XRP investors are eager to see their altcoin of choice get back a lot closer to all-time high valuations. The crypto market underperformer recently regained its number three rank thanks to an over 45% one-week rally.

However, things have since cooled down. Why is momentum currently waning, and what does this mean for an extended recovery? The same indicator on lower timeframes points to a pause from bulls, but on high timeframes suggests this is the calm before the storm. What can altcoin investors expect?

XRP Rebound Takes Pause, But Are Bulls Preparing An Even Stronger Push?

A rebound from nearly three years of a bear market takes time to recover from. First, momentum from the downtrend needs to decline, while positive momentum from bulls begins to build. After a phase of equilibrium where supply and demand reach a stalemate when the odds tip once again in the favor of bulls, a new uptrend begins.

That is exactly what XRP investors have been hoping for, after watching the asset fall over 99% from its all-time high of over $3.50 token. At the low this past Black Thursday, Ripple traded at just ten cents briefly.

The epic fall set the bottom and from there the asset has recovered over 200%, potentially giving bulls confidence to turn things around for good.

xrp macd daily bear div

XRPUSD Daily MACD Bearish Divergence & Overbought | Source: TradingView

But before that happens, the recent rally appears to be pausing or running out of momentum. According to the moving average convergence divergence indicator, a momentum measuring tool, the asset has reached overbought conditions. There’s also a bearish divergence on the MACD on daily frames.

Related Reading | Short-Term XRP Target At 40 Cents, What Ripple’s Long Road To Recovery Looks Like

These factors indicate that a temporary pullback is likely in the asset and a pause in price action possible. But it may simply be the calm before a major surge in XRP.

Monthly MACD Flips Green For First Time In Two Years, Bullish Crossover Calls For New Uptrend

A ripple-effect may have already begun the moment the monthly MACD turned bullish for the first time in over two years.

The same tool that is showing a pause in bullish momentum and overbought conditions on daily timeframes, on higher timeframes is signaling that a new uptrend is only just now starting.

xrp macd monthly

XRPUSD Monthly MACD Bullish Crossover | Source: TradingView

The moment the trend turned bearish, a red, negative reading on the MACD’s histogram began and lasted all throughout the bear market. A green flip on monthly timeframes may suggest that a new bull market has started, but hasn’t fully ramped up yet.

When the two moving averages converge and cross, it can act as a powerful buy or sell signal. This bullish crossover is underway right now on XRPUSD monthly charts, coinciding with a 200% rally already, a green flip on the histogram, and an environment ripe for inflation.

Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

In the past, XRP turning bullish took valuations from under a penny to over $3 in a year. Is the recent slowing momentum just the calm before Ripple’s major storm surge?

0 Like(s)



You should also read...

Altcoins 10/04/20 13:44 by Lorenzo Stroe
Bitcoin Price Abruptly Falls to $6.8k – Ethereum and XRP Feeling the Heat
After a month in a daily uptrend, Bitcoin is now, for the first time, dangerously close to losing it. The digital asset dropped down to $6,853 and the bulls are currently defending the 12-period EMA ...
Read More
Bitcoin 30/04/20 18:00 by Tony Spilotro
Bitcoin Price Working on Monthly Bullish Engulfing: What It Means
Bitcoin price recently exploded from under $7,800 to over $9,400, just twelve full days before the asset’s block reward halving. The powerful push from last month’s extreme low set during ...
Read More
Other 18/08/20 19:00 by Tony Spilotro
Look Out Below: How Far Can The Chainlink (LINK) Crash Go?
Chainlink’s bullish momentum hit a brick wall at $20 per LINK token, causing the previously unstoppable asset tumbling by as much as 25% in two days. After over 5,000% returns over the last two ...
Read More
Mining 02/09/20 19:00 by Tony Spilotro
This Monthly MACD Bearish Divergence Warns Of Imminent Bitcoin Crash
Bitcoin price over the 24 hours plummeted from over $12,000 to as low as $11,150 in a violent selloff. As blood runs in the streets and the crypto market turns into a sea of red, investors must decide...
Read More
Bitcoin 23/09/20 02:00 by Tony Spilotro
Bitcoin Weekly Momentum Flips Bearish For The First Time Since April
With Bitcoin holding strong above $10,000, the halving in the past, and months of positive price action, it is hard to not be bullish on the first-ever cryptocurrency. However, a momentum measuring to...
Read More