Ripple paints the largest volume in months. It's giving analysts a reason to be optimistic. Some expect it to set the tone for other coins.
To say that Ripple (XRP/USD) had a bad 2019 would be an understatement. The cryptocurrency known as “The Standard” lost nearly half of its value last year.
The monumental devaluation left many investors disgruntled. Some have accused Ripple chief executive Brad Garlinghouse of dumping XRP to hapless retail investors. On top of that, investors also slapped Ripple Labs with multiple lawsuits. One, in particular, accuses the company of selling an unregistered security.
XRP holders faced a lot of pain in 2019. Will 2020 be the same? Perhaps not. One avid altcoin trader believes that XRP’s bullish price action on Monday may be a sign of a possible trend reversal.
Twitter user Paddy Stash has gained a decent following by focusing on altcoins. On Monday, the analyst looked at Ripple and discovered a huge volume candle to match the big price action candle. Based on the chart he shared, it appears that the cryptocurrency generated the largest volume in more than three months.
It’s important to note though that the large volume can only be seen on Kucoin. Volume on other large exchanges such as Bitfinex, Binance, and Binance were not as significant.
Nevertheless, Monday’s surge is giving analysts reason to be bullish. It seems that Ripple has breached macro resistance of $0.2133. As long as it holds above that level, there’s a strong possibility of a follow-through.
Many people fell in love with cryptocurrency trading because losses that took years to unfold can be erased in a matter of weeks. Ripple is among those coins that has a reputation of pumping hard after months of deteriorating in bear territory.
The spike on Monday is giving reputable analysts ammunition to paint bullish scenarios for Ripple. For instance, Crypto Michael sees an opportunity for the crypto token to post gains of 175%. According to the trader, XRP has been trading within a narrow range for over a year. As the cryptocurrency bounces from the lower boundary of the range, it can climb to the range high of $0.45 to $0.50.
A pseudonymous account named Pentoshi shares Crypto Michael’s sentiment. The trader reveals that the doors are open to print its first higher high in over a year. Interestingly, Pentoshi also targets resistance of $0.45. If that happens, the trader expects XRP to soar to $1.07.
In cryptocurrency trading, bitcoin often sets the tone for other coins. There are times when altcoins such as Ethereum or Ripple can drag other crypto tokens into the stratosphere. The widely-followed Hsaka thinks that the Ripple pump on Monday was a sign of things to come for coins in the top ten. He is not convinced that yesterday’s pump was an outlier.
If Hsaka’s read is correct, then 2020 may be a profitable year for serious altcoin HODLers. A legitimate bull run will likely erase last year’s losses and more. An exciting year might be in store for Ripple and other crypto investors.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns XRP and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
Last modified: January 22, 2020 11:39 PM UTC