Technical Take: Ripple (XRP) Breaks Out
If you want to make money from cryptocurrencies, watch your pivot points.
In September 2018, Ripple (XRP) just hit triple bottom support and held. At the same time, RSI fell to its 30-line. And Fast Stochastic fell below its 20-line.
Each time RSI and Fast Stochastic have fallen this low, Ripple bounces higher.
Granted, some of the moves higher haven’t been substantial. But still, you can see the power of using these technical pivot points. What’s also interesting to note is that Ripple broke out of its descending channel, and broke well above its 50-day moving average.
Learn How to Spot Unique and Predictable Patterns in Cryptos
If I were a buyer of Ripple at triple bottom support, I may want to consider locking in gains on the run higher. Sure, it could run even higher on momentum.
But it’s not just about knowing when to buy a cryptocurrency.
It’s also about knowing when to sell, just as you would with a stock.
On a six-month chart of XRP, we can see that the coin is beginning to top out and pivot from its upper Bollinger Band (2,20). We can also see that top of trend is marked by double doji cross.
That tells us there’s a good tug-of-war between the bulls and bears.
At the same time, RSI topped out above its 80-line. Fast Stochastic is pivoting after a test of its 80-line. All of these indicators are confirming the likelihood of a near-term pivot lower.
Why all the Momentum?
For one, the team was expected to launch a commercial version of its payment platform, xRapid.
Reportedly, the product is a real-time settlement platform designed to speed up international payments. It also addresses the issue of “minimizing liquidity costs and making cross-border payment transactions faster. xRapid claims to significantly reduce the capital requirements for liquidity,” as reported by CNBC.
In addition, analysts began floating the idea of $5 Ripple by 2019.
One of the many reasons for this is its speed.
According to Bitcoin Exchange Guide, “Before the system update, Ripple could handle only 1,500 transactions but now can process up to 50,000 transactions per second. This is over double the number Visa can handle with 24,000 only. This makes Ripple the fastest transaction processing platform in the world.”
Another reason is adoption.
More than 100 financial institutions have adopted Ripple and are in the process of benefiting from its blockchain solutions.
According to Smarteum:
“RippleNet reduces transaction costs, speeds up transactions, and bring together a level of certainty to cross-border payments. Smaller transactions in developing markets such as China, India, and Brazil will benefit more from cross-border settlements platforms that don’t cost much or take several days.”
“Cross-border payments will increase by 3.4 percent or about $466 billion this year – according to the World Bank. Ripple is presently at the vanguard of the industry, and it has partnered with more one hundred payment providers and banks. Ripple is the firm with products such as xCurrent, RippleNet, and xRapid, and some of these products work with the XRP ledger. So as the adoption of these products increase, the adoption of XRP also increases, and this might have a significant effect on its value in the near future.”
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