Ripple (XRP) Primed For A Major Pullback As Price Remains VulnerableApril 15, 2019
Ripple (XRP) is primed for a major pullback as the price remains very vulnerable. The 4H chart for XRP/USD shows that the price has continuously faced rejection at the 50 EMA and is now likely to decline towards its trend line support. For weeks now, Ripple (XRP) has been stalling a break out of the large symmetrical triangle it has been trading in. The 4H chart shows that there is still plenty of room for XRP/USD to keep on stalling a decisive break to the upside or downside as the price remains range bound. Interest in Ripple (XRP) seems to have declined since the beginning of the year and most analysts are bearish on the future outlook of Ripple (XRP).
The cryptocurrency had a good opportunity to break out against Bitcoin (BTC) in the past few weeks but it failed to capitalize on that. Ripple (XRP) still remains heavily oversold against Bitcoin (BTC) on the weekly time frame but XRP/BTC shows no signs of a recovery. There is news of the cryptocurrency being plagued by fake trades. We have seen proofs of that in the past as well but it did not stop investors from buying and holding XRP. This time however, the buying interest in Ripple (XRP) seems to be fading away probably because investors fear that banks could issue their own digital tokens and there would be no use left for XRP. Even companies like Paypal, Visa or Mastercard might eventually want to issue their own digital tokens at some point. So, although Ripple (XRP) is massively oversold from a technical analysis standpoint, it does not seem such a lucrative investment anymore from a fundamental analysis standpoint.
Ripple (XRP) is yet to break out of a yearlong symmetrical triangle. The way in which the price breaks out of this triangle will have important consequences and will determine the future outlook of Ripple (XRP) for the months ahead. The price is currently trading between the 50 day EMA and the 200 day EMA. A lot of investors were expecting to see a golden cross on XRP/USD which is why they accumulated in anticipation of such a bullish development. However, so far the probability of that happening is quite low and the price looks more likely to break below the 50 day EMA than to break above the 200 day EMA.
The daily Stochastic RSI is near oversold territory which means we might see one strong move to the upside to retest the 200 day EMA. However, it is very unlikely for XRP/USD to break above the trend line resistance. Even though Ripple (XRP) remains massively oversold against Bitcoin (BTC), it is still overbought against the US Dollar (USD) on the weekly time frame like the rest of the market. This is why we could see the price of Ripple (XRP) decline in dollar value in the weeks ahead even if it manages to hold its ground against Bitcoin (BTC).
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