InvestingHaven’s research team is on record calling XRP one of the most exciting investing opportunities of 2021. The chart in this article combined with sentiment analysis is the perfect setup. Anyone who spent sufficient time studying charts will recognize this immediately: an extremely powerful long term reversal pattern with all the characteristics to qualify as super-bullish medium to long term. Yes, this is one of our most bullish 2021 forecasts.
First, the chart.
We have heard this so many times: you guys at InvestingHaven are all about technical analysis.
Euh, sorry, technical what?
There is a huge (read: huge) difference between technical analysis and the stuff that we produce. A gigantic difference. For starters:
- Technical analysis is about indicators that are based on historic data. Think of moving averages or the RSI indicator, as the most known examples.
- InvestingHaven’s analysis is a unique combination of intermarket analysis, leading indicator analysis, chart analysis and ongoing market activity analysis. Not related at all to technical analysis.
With chart analysis we look for dominant trends, on the medium and longer term.
With ongoing market activity analysis we look at what the market is doing at a specific point in time.
And the chart patterns can confirm ongoing market activity … or there may be a divergence … which is extremely useful information information to work with in assessing investing opportunities.
That said, if we turn our attention to below chart, we can observe a few things:
- This is a very long term reversal pattern, especially because this is an asset in an ultra fast moving market (crypto).
- The reversal characteristics are absolutely perfect, in terms of structure and levels.
- Ongoing market activity confirms the strong desire to move higher. This in turn feeds into the overall setup.
The asset we are talking about here is XRP.
And yes, the fact that it was flat lately is a good thing. The fact that BTC went up, close to all-time highs, while XRP is 90% below all time highs, says something about the upside potential.
Those who spend a lot of time on social media will hasten to say that XRP has so many opponents, and they will be able to articulate at a minimum 20 ‘reasons’ why XRP is so concerning.
We like it. In fact, we love it.
Negative sentiment on a gorgeous chart setup is a great combination.
You might think that we are absolutely crazy. Not a problem at all, you should feel free to disagree, and you stay away from anything you dislike in the first place.
But here is an analogy: Tesla, 1.5 year ago, had a volume of short sellers that would make you conclude that Tesla would never survive it. So there was only one trade: short. It was a consensus trade, based on extreme pessimism around the company and stock.
What happened? Tesla’s chart improved drastically, but pessimism among investors continued. It became ‘collective wisdom’ … sort of everyone-knows-you-should-stay-away-from-that-stock type of thought.
The rest is history. Tesla became one of the most profitable investing opportunities of 2020.
We are on record with a prediction that XRP will become one of the most profitable investments in the next 12 to 24 months. Coincidentally it has all the same characteristics as Tesla 1.5 year ago.
We expect a multi-fold rise in XRP in 2021, and maybe another leg higher to levels most can only dream of in 2022.
Do you disagree with our assessment? Not a problem at all, here is what you should do: ignore everything you said, stay away from XRP, follow our work to be notified in a year on whether the market did what we expected it to do … or not.
Ultimately, this is a very interesting case to learn from. Because if our investing thesis and assessment is right you should gladly make use of it in the future. If both Tesla in 2020 and XRP in 2021 become the most profitable investing opportunity, coming out of a period of horrible sentiment at a time when the chart is morphing into an extremely powerful long term reversal … well maybe, just maybe, this is an interesting and actionable insight for any investor (including the ones that want to run for the hills when they hear the word XRP). Just maybe.
Note that this article takes a long term horizon. In case XRP goes down 5, 10 or 25 pct in the next few days it might be absolutely unrelated to the long term bullish case. In case the market goes against our thesis we will be transparent enough to say so, in the first place to our crypto premium members but also in the public domain.