Since the beginning of 2019, the majority of the cryptocurrency market has been on an upward trend. However, the period of rapid gains for alternate coins, otherwise known as alt season has yet to begin. Besides Bitcoin, one of the biggest risers has been XRP.
The XRP price recently broke out above a significant resistance area. While it has been on a strong upward trend, we still do not have confirmation that the current trend will continue. A movement above 4000 satoshis with strong volume would likely confirm that it has.
Trader, entrepreneur, and investor Bob Loukas suggested that XRP has begun a new upward trend.
$XRP – $BTC a confirmed new uptrend and pullbacks could be bought, you would think.
Plenty of upside potential, if indeed a new trend can be sustained. pic.twitter.com/QObMevSLGS
— Bob Loukas (@BobLoukas) October 17, 2019
In the image above we can see that the price is following an upward sloping line and has broken out above a resistance area.
Let’s dig deep and see if an uptrend has really begun.
New Upward Trend for XRP
The 50- (yellow) and 100- (white) day moving averages are plotted in the image below.
At the time of writing, they are in the process of making a bullish cross. The current downtrend beginning in February was confirmed by a bearish cross between these two MAs.
Therefore, it is possible that a bullish cross will confirm the uptrend.
However, this in itself is not sufficient in confirming the presence of an upward trend.
Three resistance areas are outlined below.
While the price has moved above a minor resistance area at 3300 satoshis, it has not broken out above the major resistance area which is found at 4000 satoshis.
This was the major breakdown level in July, and moving above it would be a bullish sign.
Finally, the volume at the beginning of the upward move has been very low.
If we compare it to the beginning of the previous upward move in April and the one in December 2018, it is almost non-existent.
While we would not need volume exactly as high as previously, we would expect a higher volume for the beginning of a new upward move, especially if we project that move to have a large magnitude.
Therefore, while XRP is moving nicely along an ascending support line, we cannot confidently state that it has begun a new uptrend.
Moving above the major resistance area at 4000 satoshis with significant volume would provide a strong signal in confirming the upward trend.
Do you think XRP has begun an upward trend? Let us know in the comments below.
[Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.]
Images courtesy of Twitter, TradingView.
Be the first to start a conversation