XRP Shows Bullish Signals, but far From Parabolic
Some analysts have been eager to call a bull run for XRP.
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One of the most prominent technical analysts in the crypto community recently raised a question: “Is XRP ready to explode?” The following technical analysis explores whether this cryptocurrency is indeed bound for a parabolic move.
Golden Cross on XRP’s Horizon
In a recent tweet, TradingShot laid out different factors that lead him to believe that XRP could be preparing to “explode.”
The analyst explained that the moving average convergence divergence (MACD), which follows the path of a trend and calculates its momentum, is turning bullish on XRP’s 1-week chart. This technical index appears to be “printing the same sequence” as it did during the period between December 2014 and March 2017, according to the trader.
Now, TradingShot is waiting for the 50 and 100-week moving averages to form a golden cross. Such a bullish formation could confirm the potential bullish upswing.
Many investors view Golden crosses as one of the strongest buy signals that could start a long-term bull market. However, the 50 and 100-week moving averages on XRP’s 1-week chart are far from developing this bullish pattern.
This fact indicates that it is too early to call for a parabolic advance, but there are other technical patterns that are already turning bullish.
XRP Presents Different Bullish Signals
The TD sequential indicator, for instance, recently presented a buy signal in the form of a red nine within the same time frame. This technical index predicted a one to four candlestick upswing or the beginning of a new upward countdown.
Thus far, XRP surged for three consecutive weekly candlesticks, but the bullish momentum has not been strong enough to allow it to close above the $0.24 resistance level.
This significant price hurdle is currently represented by the 20-week moving average. Since July 2019, the 20-week moving average is containing the price of XRP from a further advance. Due to the longevity of this barrier, a weekly candlestick close above it could be seen as a positive sign.
If this happens, then XRP could surge to test the next level of resistance given by the 50-week moving average.
It is worth noting that XRP has been in a massive downtrend since it reached an all-time high of $3.30 on Jan. 04, 2018. Since then, this cryptocurrency has not been able to reach a higher high. Instead, it continues to make a series of lower lows and it recently hit $0.176.
This price level has not been seen since the week of Oct. 30, 2017.
As the potential for a steeper decline is still imminent, a break below the 7-week moving average could invalidate the bullish outlook presented in this technical analysis.
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