Is Ripple (XRP) On The Verge Of A Crippling Downtrend?
Ripple (XRP) is on the verge of a big move. The price took almost two years to arrive at this decision point. What happens from this point forward is going to be of extreme significance. Historically, we have seen descending triangles lead to declines and if the same happens here then we might be looking at a prolonged downtrend in XRP/USD. On the other hand, if we see the price break out of the descending triangle to rally higher and begin another uptrend, we might be looking at another bullish cycle. However, the probability of that remains very low at this point. That being said, I would not expect this breakout to be so straightforward. It is very likely to confuse traders short term.
We have seen Ripple (XRP) make big moves in the past and it would not be surprising to see it attempt a fake out to break the descending triangle to the upside to be eventually followed by a large downtrend. In any case, it is very important to remain focused on this triangle. If XRP/USD breaks below support, it would be extremely bearish as the price would then have to take a very long time to test and break past this support turned resistance again. Stochastic RSI on the weekly time frame is also signaling a potential bearish crossover at this point. We would still need to wait for confirmation to see how it plays out but so far the setup remains bearish and we need to consider it as such. Until and unless we see a break past the trend line resistance, I remain bearish both short term and long term on Ripple (XRP).
Ripple (XRP) risks a similar downtrend against Bitcoin (BTC) and on this weekly chart for XRP/BTC the crossover on the Stochastic RSI has already taken place. We could see a decline below this descending triangle in the near future if this downtrend remains intact. This is the most important development in Ripple (XRP) in two years and it is important not to miss this.
Ripple Futures will play a role in what happens short term but the big picture will be shaped by sustainable price movements and it is therefore a good opportunity to trade this, but for now traders need to be patient and wait for direction. The weekly chart for XRP/BTC shows that the pair holding strong above the 5 Week EMA. If it breaks below that level, then we would have a bearish EMA alignment for a downtrend. Based on this chart, it is evident that the price will have to put in more effort to turn bullish than bearish from this point of indecision which is why we remain bearish on Ripple (XRP) until the existing setup is invalidated.