A bullish correction has “rippled” across the cryptocurrency market today, with the ripple price (XRP) leading a widespread altcoin comeback.
The XRP/USD trading pair on Friday jumped more than 16 percent, rising from 0.29065-fiat to 0.32853-fiat. The upside adds up to a 37 percent increase since the pair established its bottom at 0.24711-fiat. At the same time, the XRP market cap is now just shy of $13 billion.
The rally coincides with one of the Ripple Labs’ latest announcement concerning their plans to strengthen xRapid, a cross-border banking solution. The company named three “preferred” exchanges as their partners – Bittrex (USA), Bitso (Mexico), and Coin.Ph (Philippines), based on their high XRP holdings. Therefore, banks that are associated with Ripple Labs can now open an account at the exchanges mentioned above and trade their local fiat for XRP, which later can be used to facilitate cross-border transactions on the top of Ripple ledger. Once the XRP funds move, say, from the U.S. to Mexico, the recipient will be able to convert the crypto to Mexican pesos using the Bitso exchange.
The announcement could have triggered a positive buying sentiment among speculators — if not the serious investors — that resulted in a 16 percent rally. Nevertheless, the pair was on a recovery mode since Aug. 13, and the latest price action might have just intensified it. In a broader timeframe, the ripple price continues to be in a long-term bearish trend, which could be reversed upon the formation of an extended inverse Head & Shoulder pattern towards 0.46936-fiat.
For now, the XRP/USD is currently targetting 0.35428-fiat as its potential upside target, the base of the current inverse H&S pattern, with its shoulder level aligning with 0.31282-fiat. Day traders should be observing the ascending channel formation for entry and exit positions, which further resonates with the near-term inverse H&S theory. However, it is essential to look out for a support break and set your stop losses in the opposite direction of your positions – like risk management against potential reversals.
Technically, the XRP/USD is oversold and should expect bearish corrections in near-term. The bias, meanwhile, remains to be towards the bulls.
In comparison to ripple, other top coins, including bitcoin and ethereum, found their uptrends capped by strong resistance levels. The BTC/USD rose about three percent on Friday, while the ETH/USD a slight better with five percent gains. Only EOS could match up to XRP’s interim to-the-moon ride by displaying a 12 percent surge, respectively.
Bitcoin is stuck inside a narrow range below the $6,500 level, failing to extend its upside momentum like ripple. The BTC/USD continues to form a short-term ascending line, which could be broken towards either side as the medium-term bias conflict intensifies. A move beyond $6,550 could still influence a short run towards $6,650, but a strong bull trend can only be confirmed should the $7,000-upside is achieved.
The ethereum uptrend is weak considering the coin has been the most-discussed asset during the latest crypto selloff. Like bitcoin, the ETH/USD is also trying to strike through a stubborn resistance level, at $300. The pair is now targeting $335 as the medium-term upside target while interim support can be found near $277.
The EOS/USD has extended its bounce further and is now testing $5.3 as its interim resistance level while still holding its leg near $4.18, the interim support. The pair is giving an oversold reading already which could trigger a short-term bear correction phase.
Other coins, including bitcoin cash, cardono, litecoin, and stellar have displayed single-digit surges in the past 24 hours. With that in mind, a potential correction phase has high odds.
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Last modified: May 20, 2020 6:06 PM UTC