In the past few days, Bitcoin (BTC) has been in a small uptrend after bouncing within its market structure. Now, major altcoin XRP (XRP) is climbing along for the ride – and notably, outperforming Bitcoin with a major surge of buying. The altcoin is currently being rejected at a clear level after making about 10% gains versus the dollar.
We start on the XRP/BTC daily and see a major surge coming in today, with over 10% gains. This surge has now broken the 55 EMA, and will soon collide with the next resistance above.
XRP will likely take some time to consolidate here, and retest at least the 55 EMA. We should now be on alert, paying attention to the nature of this retracement and how deep it goes or does not go. We can see that volume is pouring in today, completely breaking the previous profile.
On the XRP/USD daily, we see a not dissimilar picture, with the 55 EMA currently being retaken on an 11% (so far) move. In November, XRP lost an important multi-year support zone; but now, that zone is only about 13% above the current price. Regaining that could mean a long term trend change for XRP.
We can see that more immediate resistance will come in at about $.215 and $.233, and these will be the levels to beat in the coming day or days. The 55 may serve as a retest point for XRP if it can get above – and the prospect of a Bitcoin breakout might help XRP in this regard.
Finally, if we take a step back to the XRP/USD weekly, we see that the altcoin still has its work cut out for it to return to an uptrend. A full inverted (bearish) EMA fan signals a strong downtrend, and the main regional inflection point is at about $.29: about 33% up from here.
However, we see a powerful bull divergence on the histogram that could result – just as on the daily, on the previous chart – a strong break above that 8 and then 21 EMA. Volume on this chart (Kraken) has been falling for some time, signalling a likely release in sell pressure.
In all, XRP is looking promising. Some people have already had a good trade; now it remains to see if a larger trend and confidence can be held.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
