XRP Reaches 2020 ATH - Is It Just the Beginning of Getting Back to $0.5?
XRP Reaches 2020 ATH - Is It Just the Beginning of Getting Back to $0.5?


XRP has been out of the minds of most traders this year, however, let it be known that the cryptocurrency has already surged by a total of 75% since opening the new decade.

It only just popped up on the radar of traders as it recently climbed back above the pivotal $0.30 level - giving it a fresh lease of life, and some new trading opportunities.

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The cryptocurrency has now broken this level and continued further higher to reach resistance provided by a long term bearish .5 Fib Retracement at $0.325. 

So, What Has Been Driving This Recent Price Surge?

Well, one of the latest pieces of information was the fact that BRD wallet integrated XRP onto its platform. The BRD wallet is often considered as one of the fastest-growing wallets so integrating XRP on their platform is a pretty cool scenario for XRP users. 

Another driving force was the recent addition of XRP/USD to the BitMex futures trading platform. Before this, only XRP/BTC was available for trading, however, with the latest addition, XRP is now available to trade with up to 50X leverage!

Perhaps once of the greatest driving forces was the fact that Ripple recently ranked in the 2nd position on the Forbes top 10 most valuable fintech companies in the United States. It increased from the 5th position in the previous list to second place this year. This shows that the company itself is still growing at a staggering rate!

XRP still remains the 3rd ranked top cryptocurrency with a total market cap valuation of around $14.2 billion.

Ripple Price Analysis

XRP/USD - MEDIUM TERM - DAILY CHART

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What Has Been Going On?

Taking a look at the daily chart above we can see why it took a while for XRP to pop back onto everybody's radars. Although it started to rebound from $0.19 during January 2020, it was a very slow grind higher. It only reached around $0.25 in January and went on to drop back to $0.22 after hitting the level.

Whilst other altcoins soared by significant amounts in February and created fresh multi-month highs, XRP was out of the minds of traders in the first week of the month. It did manage to climb above the 200-days EMA during this time, however, it was still well beneath the pivotal $0.30 level and even further beneath the November 2019 highs.

This all changed a few days ago when the partnership deal and the mention from Forbes hit the news feeds.

XRP broke past resistance at $0.28 and $0.30 to climb further higher to reach the current resistance level at $0.326 - provided by a long term bearish .5 Fibonacci Retracement level. This bearish Fib Retracement is measured from the July 2019 high to the December 2019 low. 

We can see that the price increase has stalled here as XRP dropped to $0.325.

Where Can We Go From Here?

Well, the momentum is now certainly within the favor of the bulls. For this bullish run to be invalidated, the market would need to drop beneath support at $0.26 (200-days EMA).

On the way down, we can expect support at $0.32, $0.32, and $.30. Beneath this, additional support is located at $0.278 (.382 Fib Retracement), $0.26 (.5 Fib Retracement & 200-days EMA), and $0.243 (.618 Fib Retracement)

What If The Bulls Break $0.327?

If the bulls break the current resistance, then the next targets lie at $0.348 (1.618 Fib Extension) and $0.35. Above this, higher resistance lies at $0.361 (bearish .618 Fib Retracement), $0.385 (1.414 Fib Extension), and $0.40. 

If the buyers continue to charge above $0.40, resistance lies at $0.41 (bearish .786 Fib Retracement), $0.44 (bearish .886 Fib REtracement), $0.475, and then at the long-awaited $0.50 level.

Let us continue to take a look at XRP against Bitcoin.

XRP/BTC - MEDIUM TERM - DAILY CHART

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What Has Been Going On?

Against Bitcoin, we see a totally different type of price movement. The cryptocurrency was suppressed by a long term descending trend line for around 10-months. It only managed to break above this trend line during the start of February and this is when the bullish momentum truly kicked into gear. 

We can see that XRP went on to break above resistance at 3000 SAT and climbed as high as 3280 SAT as it reached resistance at the 200-days EMA. It has not even broken above the 200-days EMA at this moment in time which pretty much means that this thing still has not even begun its strong bullish run.

Where Can We Go From Here?

Once the buyers bring XRP above the 200-days EMA, things will truly start to kick into gear. The first level of strong resistance is to be expected at 3750 SAT which is the October 2019 highs. Above this, additional resistance lies at 4000 SAT.

After 4000 SAT is broken, higher resistance lies at 4175 SAT, 4345 SAT (1.414 Fib Extension) and 4634 SAT (1.518 Fib Extension). Above this, resistance is located at 5000 SAT.

Once the buyers can break 5K SATS, higher resistance lies at 5360 SAT (bearish .382 Fib Retracement), 5810 SAT, and 6277 SAT (bearish .5 Fib Retracement).

On the other hand, if the sellers start to push XRP lower, the first level of support lies at 3000 SAT. Beneath this additional support lies at 2900 SAT, 2800 SAT, 2710 SAT, and 2500 SAT. 

Are We Late, Or Still Early Enough?

This is the burning question that everybody wants to know once a cryptocurrency moves a little bit. A big bullish push makes lots of people feel that they have already missed the move and any potential extra gains would be negligible. 

However, this is rarely the truth. The recent price increases, especially against Bitcoin, are nothing but a short uptick in the overall picture.

The only way to truly see how much growth is ahead is to look at the overall picture from a long term perspective.

Let me zoom out on the charts for you to take a look;

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As you can see, there is still an ENORMOUS SPACE to move higher in 2020. The latest price increase is barely even noticeable once we zoom out. Even if we were to make it to the late 2018 highs, this would already be a 222% price increase from the current price - a pretty hefty return for anybody.

So it is important not to feel left out and continue to look for opportunities to enter at favorable prices.  

Conclusion

The latest news has now reminded everybody about the powerhouse that XRP really is. Although it is no loved by everybody, people cannot ignore the growth potential of this project. The latest price increases are literally just the start of what is about to come and, if the bulls continue to drive higher, we will certainly be hitting $0.5 pretty soon. But after that is when the real gains come along...

 

NOTE: As always, none of this is to be deemed as financial advice and you should only ever invest funds that you can afford to lose!

Happy Trading! CCW!


CryptoChartWizard91
CryptoChartWizard91

I dont *always* make good predictions, but when I do they're the best


Crypto Chart Wizard
Crypto Chart Wizard

My personal opinions and analysis of my the crypto projects that I follow. Not a financial advice.

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