Ripple (XRP) has been flirting with the possibility of a breakout and trend reversal over the last two weeks. Peter Brandt, the most followed trader on Twitter, appears to be closely monitoring the price action of the cryptocurrency. On Oct. 26, just as XRP climbed above resistance of $0.3038, Brandt shared a chart that shows a possible trend reversal.
Unfortunately, an uptrend failed to materialize as Ripple continues to trade below Brandt’s key level. Today, however, there was a lot of excitement behind the third-largest cryptocurrency as Ripple hosts the Swell conference in Singapore. The event may have helped push XRP above $0.3038, which prompted Brandt to revisit his diamond bottom scenario.
The Swell conference is a highly-anticipated event for avid Ripple fans and holders. In 2017, XRP surged by 115% before the conference. In 2018, the crypto token skyrocketed 220% before the event. Many Ripple followers were expecting a similar pump leading to the conference.
Expectations may have risen hours before the event as Ripple announced surpassing 300 customers. Earlier today, the crypto token climbed as high as $0.31500. This got investors a little excited.
The move caught the attention of Brandt:
Ripple bulls needed to hold $0.3038. According to Brandt, a move above this resistance would push the coin to $0.46912 for a massive 50% pump.
Unfortunately, the bears won the day as the crypto token suddenly took a nosedive.
Even with a supposedly bullish event to catalyze the breakout, Ripple continues to succumb to profit-taking. As a result, analysts have a gloomy outlook on the crypto token. For instance, Tomàs Sallés, Technical Analyst, Financial Writer at FXStreet.com told CCN.com,
The XRP/USD pair suffers in the short term from the inability to break above the key level of $0.31. The falls can continue.
Sallés is joined by Alex Saunders, chief executive of NuggetsNewsAU, who posted a bearish chart of Ripple on Twitter.
Saunders appears to have a plausible scenario. It is possible that retail traders expected a pump on the days leading to the Swell event. Ripple gave that impression as it closed above $0.3038 on Wednesday. However, those who longed the cryptocurrency over the last two days are likely sitting on losses. As of press time, XRP is down about 7% from its intraday high.
Trader Teddy is also bearish on the third-largest cryptocurrency. In a tweet, he says that he doesn’t get why anyone would have a bullish stance on Ripple. Apparently, the coin is respecting a massive diagonal resistance.
The Swell conference may have been a bullish catalyst over the last two years. This year, however, the event appears to be having the opposite effect. It goes to show that past results are not always indicative of future performance.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin, Ripple (XRP), and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: August 10, 2020 6:21 PM UTC