As discussed many times on this blog, XRP’s prospects are outstanding as per XRP’s fascinating long term chart. The XRP long-term chart is painting a picture of a significant bullish reversal, one that continues to gain momentum and inspire optimism. In this article, we’ll look into XRP’s chart and its characteristics that suggest a bright future for XRP.
As said before, the question When Will XRP Finally Break Out is not the right question to ask. XRP will break out, and make news highs (at a bare minimum it will test its previous highs. The ‘when’ question is besides the point. Can investors wait, is the real question.
We continue to see XRP 10 USD as the long term target. That’s a lot of upside, obviously it won’t happen overnight, it might take up to 3 years to get there. In a world dominated by central banks depressing sentiment with their hawkish speeches it really is imperative to take a long term view.
The Giant W-Reversal: A Bullish Structure
One of the most compelling aspects of XRP’s current chart is the presence of a giant W-reversal pattern. For those familiar with technical analysis, the W-reversal is synonymous with bullish sentiment. Its shape signifies a shift from a downtrend to an uptrend, and it’s often seen as a sign that the asset is poised for significant gains.
The Power of Support: Building Higher Lows
An essential characteristic of this bullish reversal is the support structure, particularly the formation of higher lows. Over the last 12 months, and even over the last 36 months, XRP’s chart displays a clear pattern of higher lows. This is a crucial indicator of growing investor confidence and buying pressure. Higher lows signify that, even during periods of consolidation or correction, each new low is higher than the previous one. It’s a sign that buyers are willing to step in at higher price levels, bolstering the cryptocurrency’s long-term prospects.
The Shrinking Candles: Fading Selling Pressure
A closer look at the chart reveals another promising characteristic: the candles are getting smaller. In the context of this reversal, smaller candles are significant. They indicate that the selling pressure, which may have dominated during the downtrend, is waning during the consolidation phase. Smaller candles reflect reduced volatility and fewer extreme price swings. This kind of price action often suggests that larger players in the market are accumulating positions, preparing for a potential upward move.
Accumulation by Larger Players
When we combine these characteristics, a compelling narrative emerges. The giant W-reversal structure, the pattern of higher lows, and the shrinking candles all point toward a scenario of accumulation by larger players in the XRP market. Smart money, institutional investors, and experienced traders seem to be positioning themselves for what they believe will be a substantial upward trend.
Ripple’s Victory over the SEC
On Tuesday, there was outstanding news in the battle between Ripple (the company, not the token) and the SEC. As per Reuters, SEC cannot appeal Ripple Labs decision, judge rules:
A federal judge on Tuesday refused to let the U.S. Securities and Exchange Commission appeal her recent decision involving Ripple Labs, a ruling that has been seen as a major defeat for the regulator in its effort to police cryptocurrency markets.
In her July 13 decision, U.S. District Judge Analisa Torres in Manhattan had ruled that the sale of Ripple’s XRP digital token on public exchanges complied with federal securities laws because purchasers had no reasonable expectation of profit based on Ripple’s efforts.
The Ripple/SEC lawsuit has depressed XRP’s sentiment in recent years. That seems to be coming to an end now, with this week’s news as the confirmation that the SEC cannot materially damage Ripple and XRP holders any longer. While the SEC might have had good intentions (we don’t want to debate their real intentions, we are making the point that it might potentially have been based on good faith), it is clear that they ended up creating big damage to investors.
XRP’s Chart Pattern Is A Long Term Bullish Reversal
In conclusion, XRP’s long-term bullish reversal is not just a fleeting phenomenon. It’s a trend that’s showing remarkable resilience and improvement. The combination of technical factors, including the W-reversal pattern, higher lows, and diminishing selling pressure, paints a picture of growing confidence and optimism in the cryptocurrency. While the crypto market can be highly volatile and unpredictable, these characteristics suggest that XRP may be on the brink of a significant positive move. As always, it’s essential for investors to conduct their research and consider the broader market context, but the long-term outlook for XRP appears increasingly promising.